75R14602 E                          

         By Armbrister, et al.                                  S.B. No. 370

         Substitute the following for S.B. No. 370:

         By Alexander                                       C.S.S.B. No. 370

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the continuation and functions of the Texas Department

 1-3     of Transportation, the abolition of the Texas Turnpike Authority,

 1-4     and the creation of regional tollway authorities; authorizing the

 1-5     issuance of bonds and the imposition of taxes; granting the power

 1-6     of eminent domain; and providing civil penalties.

 1-7           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-8             ARTICLE 1.  TEXAS TRANSPORTATION COMMISSION; TEXAS

 1-9                        DEPARTMENT OF TRANSPORTATION

1-10           SECTION 1.01.  Section 201.204, Transportation Code, is

1-11     amended to read as follows:

1-12           Sec. 201.204.  SUNSET PROVISION.  The Texas Department of

1-13     Transportation is subject to Chapter 325, Government Code (Texas

1-14     Sunset Act).  Unless continued in existence as provided by that

1-15     chapter, the department is abolished September 1, 2009 [1997].

1-16           SECTION 1.02.  Subsection (d), Section 201.051,

1-17     Transportation Code, is amended to read as follows:

1-18           (d)  Except as provided by Subsection (e), a person is not

1-19     eligible for appointment as a member of the commission if the

1-20     person or the person's spouse:

1-21                 (1)  is employed by or participates in the management

1-22     of a business entity or other organization that is regulated by or

1-23     receives funds from the department;

1-24                 (2)  directly or indirectly owns or controls more than

 2-1     10 percent interest in a business entity or other organization that

 2-2     is regulated by or receives funds from the department; [or]

 2-3                 (3)  uses or receives a substantial amount of tangible

 2-4     goods, services, or funds from the department, other than

 2-5     compensation or reimbursement authorized by law for commission

 2-6     membership, attendance, or expenses; or

 2-7                 (4)  is registered, certified, or licensed by the

 2-8     department.

 2-9           SECTION 1.03.  Subsection (c), Section 201.057,

2-10     Transportation Code, is amended to read as follows:

2-11           (c)  If the director knows that a potential ground for

2-12     removal exists, the director shall notify the commissioner of

2-13     transportation of the ground, and the commissioner shall notify the

2-14     governor and the attorney general that a potential ground for

2-15     removal exists.  If the potential ground for removal relates to the

2-16     commissioner of transportation, the director shall notify another

2-17     member of the commission, who shall notify the governor and the

2-18     attorney general that a potential ground for removal exists.

2-19           SECTION 1.04.  Subchapter B, Chapter 201, Transportation

2-20     Code, is amended by adding Section 201.059 to read as follows:

2-21           Sec. 201.059.  TRAINING ON DEPARTMENT AND CERTAIN LAWS

2-22     RELATING TO DEPARTMENT.  (a)  To be eligible to take office as a

2-23     member of the commission, a person appointed to the commission must

2-24     complete at least one course of a training program that complies

2-25     with this section.

2-26           (b)  The training program must provide information to the

2-27     person regarding:

 3-1                 (1)  this subchapter;

 3-2                 (2)  the programs operated by the department;

 3-3                 (3)  the role and functions of the department;

 3-4                 (4)  the rules of the department with an emphasis on

 3-5     the rules that relate to disciplinary and investigatory authority;

 3-6                 (5)  the current budget for the department;

 3-7                 (6)  the results of the most recent formal audit of the

 3-8     department;

 3-9                 (7)  the requirements of the:

3-10                       (A)  open meetings law, Chapter 551, Government

3-11     Code;

3-12                       (B)  open records law, Chapter 552, Government

3-13     Code; and

3-14                       (C)  administrative procedure law, Chapter 2001,

3-15     Government Code;

3-16                 (8)  the requirements of the conflict of interest laws

3-17     and other laws relating to public officials; and

3-18                 (9)  any applicable ethics policies adopted by the

3-19     commission or the Texas Ethics Commission.

3-20           (c)  A person appointed to the commission is entitled to

3-21     reimbursement for travel expenses incurred in attending the

3-22     training program, as provided by the General Appropriations Act and

3-23     as if the person were a member of the commission.

3-24           SECTION 1.05.  Section 201.102, Transportation Code, is

3-25     amended to read as follows:

3-26           Sec. 201.102.  SEPARATION [DEFINITION] OF RESPONSIBILITIES.

3-27     The commission shall develop and implement policies that clearly

 4-1     separate the policy-making [define the respective] responsibilities

 4-2     of the commission and the management responsibilities of the

 4-3     director and staff of the department.

 4-4           SECTION 1.06.  Subsection (b), Section 201.107,

 4-5     Transportation Code, is amended to read as follows:

 4-6           (b)  The commission shall file annually with the governor and

 4-7     the presiding officer of each house of the legislature a complete

 4-8     and detailed written report accounting for all funds received and

 4-9     disbursed by the department during the preceding fiscal year.  The

4-10     report must comply with each reporting requirement applicable to

4-11     financial reporting [be in the form and filed in the time] provided

4-12     by the General Appropriations Act.

4-13           SECTION 1.07.  Section 201.203, Transportation Code, is

4-14     amended to read as follows:

4-15           Sec. 201.203.  DEPARTMENT OFFICE[; RECORDS].  The department

4-16     shall have its statewide headquarters office in Austin.  [The

4-17     department shall keep all of its records in that office.]

4-18           SECTION 1.08.  Subchapter D, Chapter 201, Transportation

4-19     Code, is amended by adding Section 201.206 to read as follows:

4-20           Sec. 201.206.  DONATIONS AND CONTRIBUTIONS.  For the purpose

4-21     of carrying out its functions and duties, the department may

4-22     accept, from any source, a donation or contribution in any form,

4-23     including realty, personalty, money, materials, or services.

4-24           SECTION 1.09.  Subsections (a) and (b), Section 201.402,

4-25     Transportation Code, are amended to read as follows:

4-26           (a)  The director or the director's designee shall prepare

4-27     and maintain a written policy statement to ensure implementation of

 5-1     a program of equal employment opportunity under which all personnel

 5-2     transactions are made without regard to race, color, disability,

 5-3     sex, religion, age, or national origin.  The policy statement must

 5-4     include:

 5-5                 (1)  personnel policies, including policies relating to

 5-6     recruitment, evaluation, selection, appointment, training, and

 5-7     promotion of personnel that comply with Chapter 21, Labor Code;

 5-8                 (2)  a comprehensive analysis of the department work

 5-9     force that meets federal and state laws, rules, and regulations,

5-10     and instructions directly adopted under those laws, rules, or

5-11     regulations [guidelines];

5-12                 (3)  procedures by which a determination can be made of

5-13     significant underuse in the department work force of all persons

5-14     for whom federal or state laws, rules, and regulations, and

5-15     instructions directly adopted under those laws, rules, or

5-16     regulations [guidelines] encourage a more equitable balance; and

5-17                 (4)  reasonable methods to appropriately address the

5-18     areas of significant underuse.

5-19           (b)  A policy statement prepared under Subsection (a) must

5-20     cover an annual period, be updated at least annually, be reviewed

5-21     by the Texas Commission on Human Rights for compliance with

5-22     Subsection (a)(1), and be filed with the governor's office.

5-23           SECTION 1.10.  Subsections (a) and (b), Section 201.404,

5-24     Transportation Code, are amended to read as follows:

5-25           (a)  The director or the director's designee shall develop an

5-26     intra-agency career ladder program that addresses opportunities for

5-27     mobility and advancement for employees in the department [covering

 6-1     all full-time classified and exempt positions].  The program shall

 6-2     require intra-agency posting of all [nonentry] positions

 6-3     concurrently with any public posting.

 6-4           (b)  The director or the director's designee shall develop a

 6-5     system of annual performance evaluations that are based on

 6-6     documented employee performance.  All merit pay for department

 6-7     employees must be based on the system established under this

 6-8     subsection.

 6-9           SECTION 1.11.  Subchapter I, Chapter 201, Transportation

6-10     Code, is amended by adding Section 201.705 to read as follows:

6-11           Sec. 201.705.  PILOT PROJECT ON VEHICLE MAINTENANCE

6-12     OUTSOURCING.  (a)  The department shall conduct a two-year pilot

6-13     project to determine whether contracting with a private entity for

6-14     maintenance and repair services of all department vehicles would be

6-15     cost-effective.

6-16           (b)  The study must be implemented in at least three of the

6-17     department's districts.  The districts in which the study is

6-18     implemented must vary in geography and population.

6-19           (c)  Any cost savings that result from the project shall be

6-20     deposited to the credit of the state infrastructure bank account

6-21     created under Subchapter D, Chapter 222.

6-22           (d)  Not later than January 1, 2001, the department shall

6-23     submit a report to the legislature on the results of the pilot

6-24     program and any recommendations on the continuation or expansion of

6-25     the pilot program.

6-26           (e)  This section expires January 1, 2001.

6-27           SECTION 1.12.  Section 201.801, Transportation Code, is

 7-1     amended by amending Subsection (c) and adding Subsection (e) to

 7-2     read as follows:

 7-3           (c)  The department shall:

 7-4                 (1)  keep an information file about each written

 7-5     complaint filed with the department that the department has the

 7-6     authority to resolve; and

 7-7                 (2)  provide the person who filed the complaint, and

 7-8     each person or entity that is the subject of the complaint,

 7-9     information about the department's policies and procedures relating

7-10     to complaint investigation and resolution.

7-11           (e)  With regard to each complaint filed with the department,

7-12     the department shall keep the following information:

7-13                 (1)  the date the complaint is filed;

7-14                 (2)  the name of the person filing the complaint;

7-15                 (3)  the subject matter of the complaint;

7-16                 (4)  a record of each person contacted in relation to

7-17     the complaint;

7-18                 (5)  a summary of the results of the review or

7-19     investigation of the complaint; and

7-20                 (6)  if the department takes no action on the

7-21     complaint, an explanation of the reasons that no action was taken.

7-22           SECTION 1.13.  Section 201.802, Transportation Code, is

7-23     amended by amending Subsection (b) and adding Subsection (c) to

7-24     read as follows:

7-25           (b)  The director [department] shall prepare and maintain a

7-26     written plan that describes the manner in which a person who does

7-27     not speak English or who has a physical, mental, or developmental

 8-1     disability is provided reasonable access to the department's

 8-2     programs.

 8-3           (c)  The department shall comply with each applicable law of

 8-4     the United States or this state that relates to program or facility

 8-5     accessibility.

 8-6           SECTION 1.14.  Subchapter K, Chapter 201, Transportation

 8-7     Code, is amended by adding Section 201.905 to read as follows:

 8-8           Sec. 201.905.  MULTIMODAL ROAD USE.   (a)  The department

 8-9     shall conduct a comprehensive analysis of the multimodal use of

8-10     roads and highways in the state highway system.  The analysis shall

8-11     include the collection of data on users' concerns about road

8-12     conditions and actual and potential use patterns of roads or

8-13     highways.

8-14           (b)  After the analysis required by Subsection (a) is

8-15     completed, the department shall initiate and coordinate a campaign

8-16     to help increase public awareness of traffic safety issues.

8-17           (c)  The department shall initiate a program of continuing

8-18     community involvement sessions to help other state agencies, local

8-19     decision-makers, interest groups, and the general public improve

8-20     the state's comprehensive transportation system to include all

8-21     modes of transportation.

8-22           SECTION 1.15.  Chapter 201, Transportation Code, is amended

8-23     by adding Subchapter L to read as follows:

8-24               SUBCHAPTER L.  ELECTRONIC ISSUANCE OF LICENSES

8-25           Sec. 201.931.  DEFINITIONS.  In this subchapter:

8-26                 (1)  "Digital signature" means an electronic identifier

8-27     intended by the person using it to have the same force and effect

 9-1     as the use of a manual signature.

 9-2                 (2)  "License" includes:

 9-3                       (A)  a permit issued by the department that

 9-4     authorizes the operation of a vehicle and its load or a combination

 9-5     of vehicles and load exceeding size or weight limitations;

 9-6                       (B)  motor carrier registration issued under

 9-7     Article 6675c, Revised Statutes;

 9-8                       (C)  a vehicle storage facility license issued

 9-9     under Article 6687-9a, Revised Statutes;

9-10                       (D)  a license or permit for outdoor advertising

9-11     issued under Chapter 391 or 394;

9-12                       (E)  a salvage motor vehicle dealer and agent

9-13     license issued under Article 6687-1a, Revised Statutes;

9-14                       (F)  specially designated or specialized license

9-15     plates issued under Subchapters E and F, Chapter 502; and

9-16                       (G)  an apportioned registration issued according

9-17     to the International Registration Plan under Section 502.054.

9-18           Sec. 201.932.  APPLICATION FOR AND ISSUANCE OF LICENSE.

9-19     (a)  The commission  may by rule provide for the filing of a

9-20     license application and the issuance of a license by electronic

9-21     means.

9-22           (b)  The commission may limit applicant eligibility under

9-23     Subsection (a) if the rules include reasonable eligibility

9-24     criteria.

9-25           Sec. 201.933.  DIGITAL SIGNATURE.  (a)  A license application

9-26     received by the department is considered signed if a digital

9-27     signature is transmitted with the application and intended by the

 10-1    applicant to authenticate the license in accordance with Subsection

 10-2    (b).

 10-3          (b)  The department may only accept a digital signature used

 10-4    to authenticate a license application under procedures that:

 10-5                (1)  comply with any applicable rules of another state

 10-6    agency having jurisdiction over department use or acceptance of a

 10-7    digital signature; and

 10-8                (2)  provide for consideration of factors that may

 10-9    affect a digital signature's reliability, including whether a

10-10    digital signature is:

10-11                      (A)  unique to the person using it;

10-12                      (B)  capable of independent verification;

10-13                      (C)  under the sole control of the person using

10-14    it; and

10-15                      (D)  transmitted in a manner that will make it

10-16    infeasible to change the data in the communication or digital

10-17    signature without invalidating the digital signature.

10-18          Sec. 201.934.  PAYMENT OF FEES.  The commission may adopt

10-19    rules regarding the method of payment of a fee for a license issued

10-20    under this subchapter.  The rules may authorize the use of

10-21    electronic funds transfer or a valid credit card issued by a

10-22    financial institution chartered by a state or the federal

10-23    government or by a nationally recognized credit organization

10-24    approved by the department.  The rules may require the payment of a

10-25    discount or service charge for a credit card payment in addition to

10-26    the fee.

10-27          SECTION 1.16.  Subchapter C, Chapter 202, Transportation

 11-1    Code, is amended by adding Section 202.060 to read as follows:

 11-2          Sec. 202.060.  LIVING LOGOS; PILOT PROJECT.  (a)  The

 11-3    commission may adopt rules implementing a pilot project for the

 11-4    leasing of state highway right-of-way, subject to any applicable

 11-5    federal regulation of outdoor advertising, as a location or

 11-6    locations for commercial advertising by means of a floral mosaic

 11-7    living logo.

 11-8          (b)  Rules adopted under this section shall:

 11-9                (1)  provide for the award of a lease in a manner that

11-10    maximizes revenue to the state;

11-11                (2)  regulate the content, composition, placement,

11-12    installation, and maintenance of a floral mosaic living logo;

11-13                (3)  set a bond for faithful performance of the lessee;

11-14                (4)  provide for the public safety;

11-15                (5)  ensure that installation and maintenance of a

11-16    floral mosaic living logo will not interfere with access to, or be

11-17    inconsistent with the use of, abutting property; and

11-18                (6)  include such other matters as may be necessary to

11-19    protect the integrity of the involved highway.

11-20          (c)  A floral mosaic living logo installed or placed under

11-21    this section may not contain a message, symbol, or trademark that

11-22    resembles an official traffic-control device.

11-23          (d)  This section applies to state highway right-of-way in a

11-24    county with a population of 500,000 or more.

11-25          SECTION 1.17.  Subchapter B, Chapter 222, Transportation

11-26    Code, is amended by adding Section 222.034 to read as follows:

11-27          Sec. 222.034.  DISTRIBUTION OF FEDERAL FUNDS.  (a)  Federal

 12-1    aid for transportation purposes that is administered by the

 12-2    commission shall be distributed to the various parts of the state

 12-3    for a funding cycle through the selection of highway projects in

 12-4    the state in a manner that is consistent with federal formulas that

 12-5    determine the amount of federal aid for transportation purposes

 12-6    received by the state.  A distribution under this subsection does

 12-7    not include deductions made for the state infrastructure bank or

 12-8    other federal funds reallocated by the federal government.

 12-9          (b)  The commission may vary from the distribution procedure

12-10    provided by Subsection (a) if it issues a ruling or minute order

12-11    identifying the variance and providing a particular justification

12-12    for the variance.

12-13          SECTION 1.18.  Subchapter C, Chapter 222, Transportation

12-14    Code, is amended by adding Section 222.053 to read as follows:

12-15          Sec. 222.053.  RELIEF FROM LOCAL MATCHING FUNDS REQUIREMENT.

12-16    (a)  In this section, "economically disadvantaged county" means a

12-17    county that has, in comparison to other counties in the state:

12-18                (1)  below average per capita taxable property value;

12-19                (2)  below average per capita income; and

12-20                (3)  above average unemployment.

12-21          (b)  Except as provided by Subsection (c), the commission may

12-22    require, request, or accept from a political subdivision matching

12-23    or other local funds, rights-of-way, utility adjustments,

12-24    additional participation, planning, documents, or any other local

12-25    incentives to make the most efficient use of its highway funding.

12-26          (c)  In evaluating a proposal to construct, maintain, or

12-27    extend a highway or for another type of highway project in a

 13-1    political subdivision that consists of all or a portion of an

 13-2    economically disadvantaged county, the commission:

 13-3                (1)  may not consider the absence or value of local

 13-4    incentives provided under Subsection (b) or the value of a benefit

 13-5    received by the state in an agreement under Section 791.031,

 13-6    Government Code, beyond the minimum required local matching funds;

 13-7    and

 13-8                (2)  shall adjust the minimum local matching funds

 13-9    requirement after evaluating the political subdivision's effort and

13-10    ability to meet the requirement.

13-11          (d)  In making an adjustment under Subsection (c)(2), the

13-12    commission may use its in-kind resources and any other available

13-13    resources to help satisfy a federal requirement.

13-14          (e)  The commission shall report annually to the governor,

13-15    the lieutenant governor, and the speaker of the house of

13-16    representatives on the use of matching funds and local incentives

13-17    and the ability of the commission to ensure that political

13-18    subdivisions located in economically disadvantaged counties have

13-19    equal ability to compete for highway funding with political

13-20    subdivisions in counties that are not economically disadvantaged.

13-21          SECTION 1.19.  Subsection (c), Section 202.052,

13-22    Transportation Code, is amended to read as follows:

13-23          (c)  The department shall charge not less than fair market

13-24    value for the highway asset, payable in cash, services, tangible or

13-25    intangible property, or any combination of cash, services, or

13-26    property.

13-27          SECTION 1.20.  Chapter 202, Transportation Code, is amended

 14-1    by adding Subchapter E to read as follows:

 14-2               SUBCHAPTER E.  TELECOMMUNICATIONS FACILITIES

 14-3          Sec. 202.091.  DEFINITION.  In this subchapter,

 14-4    "telecommunications" means any transmission, emission, or reception

 14-5    of signs, signals, writings, images, or sounds of intelligence of

 14-6    any nature by wire, radio, optical, or other electromagnetic

 14-7    systems.

 14-8          Sec. 202.092.  USE OF DEPARTMENT FACILITIES.  Notwithstanding

 14-9    any other law, a telecommunications provider may not place or

14-10    maintain its facilities or otherwise use improvements, including

14-11    structures, medians, conduits, or telecommunications equipment or

14-12    lines, constructed or installed by the state as components of the

14-13    state highway system except by a lease under Section 202.052 or an

14-14    agreement under Section 202.093.

14-15          Sec. 202.093.  AGREEMENT.  (a)  Notwithstanding any other

14-16    law, the department may enter into an agreement with a

14-17    telecommunications provider allowing the provider, for the

14-18    provider's commercial purposes, to:

14-19                (1)  place the provider's telecommunications facilities

14-20    within the median of a divided state highway; or

14-21                (2)  place lines within or otherwise use

14-22    telecommunications facilities owned or installed by the state in or

14-23    on the improved portion of a state highway, including a median,

14-24    structures, equipment, conduits, or any other component of the

14-25    highway facilities constructed or owned by the department.

14-26          (b)  An agreement entered into under Subsection (a) may

14-27    provide for compensation between the department and the

 15-1    telecommunications provider in the form of cash or the shared use

 15-2    of facilities.

 15-3          Sec. 202.094.  COMPETITIVE SEALED PROPOSAL.  (a)  Before

 15-4    entering into an agreement with a telecommunications provider under

 15-5    this subchapter, the department shall follow a procedure using

 15-6    competitive sealed proposals.

 15-7          (b)  The department shall solicit proposals by a request for

 15-8    proposals and shall publish notice of the request in at least two

 15-9    newspapers of general circulation and in the Texas Register.

15-10          (c)  The proposals shall be opened so as to avoid disclosure

15-11    of contents to competing offerors during the process of

15-12    negotiation.  After a contract is awarded, all proposals that have

15-13    been submitted shall be open for public inspection subject to

15-14    Subchapter C, Chapter 552, Government Code.

15-15          (d)  The department may discuss an acceptable or potentially

15-16    acceptable proposal with an offeror to assess the offeror's ability

15-17    to meet the solicitation requirements.  After the submission of a

15-18    proposal but before making an award, the department may permit the

15-19    offeror to revise the proposal in order to obtain the best final

15-20    offer.  The department may not disclose any information derived

15-21    from proposals submitted from competing offerors in conducting

15-22    discussions under this section.  The department shall provide each

15-23    offeror with an equal opportunity for discussion and revision of

15-24    proposals.

15-25          (e)  The department shall make a written award of a contract

15-26    to the offeror whose proposal is the most advantageous to the

15-27    state, considering price and the evaluation factors in the request

 16-1    for proposals, except that if the department finds that none of the

 16-2    offers is acceptable, it shall refuse all offers.  The contract

 16-3    file must state in writing the basis on which the award is made.

 16-4          Sec. 202.095.  APPLICABILITY.  (a)  Subtitle D, Title 10,

 16-5    Government Code, does not apply to a procurement under this

 16-6    subchapter.

 16-7          (b)  This subchapter does not limit a telecommunications

 16-8    provider from placing lines or facilities in the unimproved portion

 16-9    of state highway right-of-way to the extent authorized by

16-10    applicable law.

16-11          Sec. 202.096.  REVENUE.  The department shall deposit in the

16-12    state highway fund any revenue received under this subchapter.

16-13          Sec. 202.097.  RULEMAKING.  The commission shall adopt rules

16-14    for the implementation of this subchapter.

16-15          SECTION 1.21.  Chapter 222, Transportation Code, is amended

16-16    by adding Subchapter D to read as follows:

16-17                 SUBCHAPTER D.  STATE INFRASTRUCTURE BANK

16-18          Sec. 222.071.  DEFINITIONS.  In this subchapter:

16-19                (1)  "Bank" means the state infrastructure bank

16-20    account.

16-21                (2)  "Construction" has the meaning assigned by 23

16-22    U.S.C. Section 101.

16-23                (3)  "Federal act" means Section 350 of the National

16-24    Highway System Designation Act of 1995 (Pub. L. No. 104-59).

16-25                (4)  "Federal-aid highway" has the meaning assigned by

16-26    23 U.S.C. Section 101.

16-27                (5)  "Qualified project" includes:

 17-1                      (A)  the construction of a federal-aid highway;

 17-2                      (B)  a transit project under 49 U.S.C. Sections

 17-3    5307, 5309, and 5311; or

 17-4                      (C)  for the expenditure of secondary funds, a

 17-5    project eligible for assistance under Title 23 or Title 49, United

 17-6    States Code.

 17-7                (6)  "Secondary funds" includes:

 17-8                      (A)  the repayment of a loan or other assistance

 17-9    that is provided with money deposited to the credit of the bank;

17-10    and

17-11                      (B)  investment income generated by secondary

17-12    funds deposited to the credit of the bank.

17-13          Sec. 222.072.  STATE INFRASTRUCTURE BANK.  (a)  The state

17-14    infrastructure bank is an account in the state highway fund.  The

17-15    bank is administered by the commission.

17-16          (b)  Federal funds received by the state under the federal

17-17    act, matching state funds in an amount required by that act,

17-18    proceeds from bonds issued under Section 222.075, money saved as a

17-19    result of contracting with a private entity for maintenance and

17-20    repair services for department vehicles, secondary funds, and other

17-21    money received by the state that is eligible for deposit in the

17-22    bank may be deposited into the bank and used only for the purposes

17-23    described in this subchapter.

17-24          Sec. 222.073.  PURPOSES OF INFRASTRUCTURE BANK.  The

17-25    commission shall use money deposited in the bank to:

17-26                (1)  encourage public and private investment in

17-27    transportation facilities, including facilities that contribute to

 18-1    the multimodal and intermodal transportation capabilities of the

 18-2    state; and

 18-3                (2)  develop financing techniques designed to:

 18-4                      (A)  expand the availability of funding for

 18-5    transportation projects and to reduce direct state costs;

 18-6                      (B)  maximize private and local participation in

 18-7    financing projects; and

 18-8                      (C)  improve the efficiency of the state

 18-9    transportation system.

18-10          Sec. 222.074.  FORM OF ASSISTANCE.  (a)  To further a purpose

18-11    described by Section 222.073, the commission may use money

18-12    deposited to the credit of the bank to provide financial assistance

18-13    to a public or private entity for a qualified project to:

18-14                (1)  extend credit by direct loan;

18-15                (2)  provide credit enhancements;

18-16                (3)  serve as a capital reserve for bond or debt

18-17    instrument financing;

18-18                (4)  subsidize interest rates;

18-19                (5)  insure the issuance of a letter of credit or

18-20    credit instrument;

18-21                (6)  finance a purchase or lease agreement in

18-22    connection with a transit project;

18-23                (7)  provide security for bonds and other debt

18-24    instruments; or

18-25                (8)  provide methods of leveraging money that have been

18-26    approved by the United States secretary of transportation and

18-27    relate to the project for which the assistance is provided.

 19-1          (b)  Financial assistance to a private entity under

 19-2    Subsection (a) shall be limited to a qualified project that:

 19-3                (1)  provides transportation services or facilities

 19-4    that provide a demonstrated public benefit; or

 19-5                (2)  is constructed or operated in cooperation with a

 19-6    state agency or political subdivision in accordance with an

 19-7    agreement between that agency or political subdivision and the

 19-8    private entity.

 19-9          Sec. 222.075.  REVENUE BONDS.  (a)  The commission may issue

19-10    revenue bonds for the purpose of providing money for the bank.

19-11          (b)  Except as provided by Subsection (c), the commission may

19-12    issue revenue bonds or revenue refunding bonds under this section

19-13    without complying with any other law applicable to the issuance of

19-14    bonds.

19-15          (c)  Notwithstanding any other provision of this section, the

19-16    following laws apply to bonds issued by the commission:

19-17                (1)  Chapter 503, Acts of the 54th Legislature, 1955

19-18    (Article 717k, Vernon's Texas Civil Statutes);

19-19                (2)  Chapter 3, Acts of the 61st Legislature, Regular

19-20    Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes);

19-21                (3)  the Bond Procedures Act of 1981 (Article 717k-6,

19-22    Vernon's Texas Civil Statutes);

19-23                (4)  Chapter 1078, Acts of the 70th Legislature,

19-24    Regular Session, 1987 (Article 717k-7, Vernon's Texas Civil

19-25    Statutes);

19-26                (5)  Article 3, Chapter 53, Acts of the 70th

19-27    Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's

 20-1    Texas Civil Statutes); and

 20-2                (6)  Chapter 656, Acts of the 68th Legislature, Regular

 20-3    Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).

 20-4          (d)  The revenue bonds are special obligations of the

 20-5    commission payable only from income and receipts of the bank as the

 20-6    commission may designate.  The income and receipts include

 20-7    principal of and interest paid and to be paid on acquired

 20-8    obligations, other designated obligations held by the bank, or

 20-9    income from accounts created within the bank.

20-10          (e)  The revenue bonds do not constitute a debt of the state

20-11    or a pledge of the faith and credit of the state.

20-12          (f)  The commission may require participants to make charges,

20-13    levy taxes, or otherwise provide for sufficient money to pay

20-14    acquired obligations.

20-15          (g)  Revenue bonds issued under this section shall be

20-16    authorized by order of the commission and shall have the form and

20-17    characteristics and bear the designations as are provided in the

20-18    order.

20-19          (h)  Revenue bonds shall:

20-20                (1)  be dated;

20-21                (2)  bear interest at the rate or rates authorized by

20-22    law;

20-23                (3)  mature at the time or times, serially, as term,

20-24    revenue bonds, or otherwise not more than 50 years after their

20-25    dates;

20-26                (4)  be called before stated maturity on the terms and

20-27    at the prices, be in the denominations, be in the form, either

 21-1    coupon or registered, carry registration privileges as to principal

 21-2    only or as to both principal and interest and as to successive

 21-3    exchange of coupon for registered bonds or one denomination for

 21-4    bonds of other denominations, and successive exchange of registered

 21-5    revenue bonds for coupon revenue bonds, be executed in the manner,

 21-6    and be payable at the place or places inside or outside the state,

 21-7    as provided in the order;

 21-8                (5)  be issued in temporary or permanent form;

 21-9                (6)  be issued in one or more installments and from

21-10    time to time as required and sold at a price or prices and under

21-11    terms determined by the commission to be the most advantageous

21-12    reasonably obtainable; and

21-13                (7)  be issued on a parity with and be secured in the

21-14    manner as other revenue bonds authorized to be issued by this

21-15    section or be issued without parity and secured differently from

21-16    other revenue bonds.

21-17          (i)  All proceedings relating to the issuance of revenue

21-18    bonds issued under this section shall be submitted to the attorney

21-19    general for examination.  On determining that the revenue bonds

21-20    have been authorized in accordance with law, the attorney general

21-21    shall approve the revenue bonds, and the revenue bonds shall be

21-22    registered by the comptroller.  After the approval and

21-23    registration, the revenue bonds are incontestable in any court or

21-24    other forum for any reason and are valid and binding obligations in

21-25    accordance with their terms for all purposes.

21-26          (j)  The proceeds received from the sale of revenue bonds

21-27    shall be deposited in the bank and invested in the manner provided

 22-1    for other funds deposited under this subchapter.

 22-2          Sec. 222.076.  SEPARATE SUBACCOUNTS.  The bank shall consist

 22-3    of at least two separate subaccounts, a highway subaccount and a

 22-4    transit subaccount.

 22-5          Sec. 222.077.  REPAYMENT TERMS; DEPOSIT OF REPAYMENTS;

 22-6    INVESTMENT INCOME.  (a)  Any funds disbursed through the state

 22-7    infrastructure bank must be repaid on terms determined by the

 22-8    commission that comply with the federal act.

 22-9          (b)  Notwithstanding any other law to the contrary:

22-10                (1)  the repayment of a loan or other assistance

22-11    provided with money deposited to the credit of a subaccount in the

22-12    bank shall be deposited in that subaccount; and

22-13                (2)  investment income generated by money deposited to

22-14    the credit of a subaccount in the bank shall be:

22-15                      (A)  credited to that subaccount;

22-16                      (B)  available for use in providing financial

22-17    assistance under this subchapter; and

22-18                      (C)  invested in United States Treasury

22-19    securities, bank deposits, or other financing instruments approved

22-20    by the United States secretary of transportation to earn interest

22-21    and enhance the financing of projects assisted by the bank.

22-22          (c)  The commission shall administer the bank in compliance

22-23    with the federal act and any applicable federal regulation or

22-24    guideline.

22-25          (d)  The commission by rule shall:

22-26                (1)  implement this subchapter; and

22-27                (2)  establish eligibility criteria for an entity

 23-1    applying for financial assistance from the bank.

 23-2          Sec. 222.078.  REPORT TO LEGISLATURE.  (a)  Not later than

 23-3    January 1, 2001, the department shall submit a report to the

 23-4    legislature on the status of projects funded by the state

 23-5    infrastructure bank and the use of the bank.  The report must

 23-6    include information about:

 23-7                (1)  the financial and operational status of projects

 23-8    assisted by the bank;

 23-9                (2)  the financial condition of the bank, including

23-10    fund balances;

23-11                (3)  the cumulative value of investments made; and

23-12                (4)  the extent to which projects assisted by the bank

23-13    have aided the state in meeting the state's transportation needs.

23-14          (b)  This section expires January 1, 2001.

23-15          SECTION 1.22.  Subchapter A, Chapter 223, Transportation

23-16    Code, is amended by adding Sections 223.012 and 223.013 to read as

23-17    follows:

23-18          Sec. 223.012.  CONTRACTOR PERFORMANCE.  The department shall:

23-19                (1)  develop a schedule for liquidated damages that

23-20    accurately reflects the costs associated with project completion

23-21    delays, including administrative and travel delays; and

23-22                (2)  review contractor bidding capacity to ensure that

23-23    contractors meet each quality and timeliness standard established

23-24    by the commission.

23-25          Sec. 223.013.  ELECTRONIC BIDDING SYSTEM.  (a)  The

23-26    department may establish an electronic bidding system for highway

23-27    construction and maintenance contracts.

 24-1          (b)  The system must permit a qualified vendor to

 24-2    electronically submit a bid, including any contract, signature, or

 24-3    verification of a guaranty check by a financial institution.

 24-4          (c)  That part of Section 223.004(a) requiring a bid to be

 24-5    opened at a public hearing of the commission does not apply to an

 24-6    electronically submitted bid.  A copy of each electronically

 24-7    submitted bid shall be publicly posted within 48 hours after bids

 24-8    are opened.

 24-9          (d)  After the electronic bidding system is established, the

24-10    department shall take the actions necessary to recover the

24-11    department's costs of manually processing bids from a person who

24-12    does not submit an electronic bid.

24-13          SECTION 1.23.  Section 223.041, Transportation Code, is

24-14    amended to read as follows:

24-15          Sec. 223.041.  ENGINEERING AND DESIGN CONTRACTS.  (a)  The

24-16    department shall use private sector engineering-related services to

24-17    assist in accomplishing its activities in providing transportation

24-18    projects.  For the purpose of this section, engineering-related

24-19    services means engineering, land surveying, environmental,

24-20    transportation feasibility and financial, architectural, real

24-21    estate appraisal, and materials laboratory services.  These

24-22    engineering-related services are for highway improvements,

24-23    right-of-way acquisition, and aviation improvements [department's

24-24    policy regarding the regular use of private sector professional

24-25    services for preliminary and construction engineering and

24-26    engineering design shall achieve a balance between the use of

24-27    department employees and the use of private contractors if the

 25-1    costs are equivalent].

 25-2          (b)  The department, in setting the level of expenditures in

 25-3    these engineering-related activities that will be paid to the

 25-4    private sector providers, shall index the level of expenditures

 25-5    from the amount set by rider in the General Appropriations Act

 25-6    enacted by the 75th Legislature at its regular session in 1997,

 25-7    expressed as a percentage of the total funds appropriated in

 25-8    Strategy A.1.1. Plan/Design/Manage [office of the state auditor

 25-9    shall determine relevant costs to be considered under Subsection

25-10    (a)].

25-11          (c)  Beginning in fiscal year 2000, the department shall

25-12    increase its expenditures to private sector providers for

25-13    engineering-related services at least one percentage point per year

25-14    until the expenditure level in all strategies paid to private

25-15    sector providers for all department engineering-related services

25-16    for transportation projects reaches a goal of 35 percent of funds

25-17    appropriated in Strategy A.1.1. Plan/Design/Manage of the General

25-18    Appropriations Act enacted by the 75th Legislature at its regular

25-19    session in 1997.

25-20          (d)  The commission may provide for hearings at which private

25-21    sector complaints relating to the selection process are heard.

25-22          SECTION 1.24.  Chapter 224, Transportation Code, is amended

25-23    by adding Subchapter F to read as follows:

25-24       SUBCHAPTER F.  CONGESTION MITIGATION PROJECTS AND FACILITIES

25-25          Sec. 224.151.  DEFINITIONS.  In this subchapter:

25-26                (1)  "Congestion" means the level at which

25-27    transportation system performance is no longer acceptable because

 26-1    of traffic interference.  The level of acceptable system

 26-2    performance may vary by type of transportation facility, geographic

 26-3    location, or time of day.

 26-4                (2)  "Congestion mitigation" means projects and

 26-5    facilities used to reduce congestion to promote the use of carpools

 26-6    and vanpools, improve air quality, conserve fuel, and enhance the

 26-7    use of existing highways and facilities on the state highway

 26-8    system.

 26-9                (3)  "High occupancy vehicle" means a bus or other

26-10    motorized passenger vehicle such as a carpool or vanpool vehicle

26-11    used for ridesharing purposes and occupied by a specified minimum

26-12    number of persons.

26-13                (4)  "High occupancy vehicle lane" means one or more

26-14    lanes of a highway or an entire highway where high occupancy

26-15    vehicles, trucks, or emergency vehicles in any combination are

26-16    given at all times, or at regularly scheduled times, a priority or

26-17    preference over some or all other vehicles moving in the general

26-18    stream of all highway traffic.

26-19                (5)  "Motor vehicle" has the meaning assigned by

26-20    Section 522.003.

26-21                (6)  "Transportation corporation" means a

26-22    transportation corporation created by the state under Chapter 431.

26-23          Sec. 224.152.  PURPOSE.  (a)  Subject to the availability of

26-24    state and federal funds, it is the intent of the legislature to

26-25    further the purposes of the United States Congress as expressed in

26-26    23 U.S.C. Sections 134, 135, 146, and 149 and in Section 1012(b) of

26-27    Pub. L. No. 102-240 to conserve fuel, decrease traffic congestion

 27-1    during rush hours, improve air quality, develop innovative

 27-2    techniques to finance transportation projects, and enhance the use

 27-3    of existing highways and facilities.

 27-4          (b)  The legislature declares that it is necessary, to

 27-5    further the purposes described by Subsection (a), to provide for

 27-6    the participation of the commission and the department in projects

 27-7    and facilities for the purpose of congestion mitigation.

 27-8          Sec. 224.153.  HIGH OCCUPANCY VEHICLE LANES AUTHORIZED.

 27-9    (a)  The commission may designate and the department or a

27-10    transportation corporation may design, construct, operate, or

27-11    maintain one or more lanes on a multi-lane highway facility as

27-12    dedicated high occupancy vehicle lanes on the state highway system.

27-13          (b)  The commission may spend or allocate any available funds

27-14    to:

27-15                (1)  designate highway lanes as preferential carpool or

27-16    high occupancy vehicle lanes and create facilities to relieve

27-17    traffic congestion; or

27-18                (2)  make any other designation of a dedicated high

27-19    occupancy vehicle lane on the state highway system.

27-20          Sec. 224.154.  CONGESTION MITIGATION.  (a)  Notwithstanding

27-21    any law of this state relating to charging tolls on existing free

27-22    public highways, the commission may by order authorize the

27-23    department or a transportation corporation to charge a toll for the

27-24    use of one or more lanes of a state highway facility, including a

27-25    high occupancy vehicle lane, for the purposes of congestion

27-26    mitigation.  The commission may enter into an agreement with a

27-27    regional tollway authority described in Chapter 366, or a transit

 28-1    authority described in Chapter 451, 452, or 453, to charge a toll

 28-2    for the use of one or more lanes of a state highway facility under

 28-3    this subsection.

 28-4          (b)  The commission may by order set the amount of toll

 28-5    charges.  Any toll charges shall be imposed in a reasonable and

 28-6    nondiscriminatory manner.

 28-7          (c)  For purposes of congestion mitigation projects and

 28-8    facilities under this subchapter, the department, a transportation

 28-9    corporation, and a regional tollway authority or a transit

28-10    authority with whom the commission has an agreement under this

28-11    section are successor agencies to the Texas Turnpike Authority for

28-12    purposes of Section 52-b, Article III, Texas Constitution.

28-13          (d)  Revenue generated from toll charges and administrative

28-14    fees assessed by the department in connection with a congestion

28-15    mitigation facility shall be deposited in the state highway fund

28-16    and may be used only for projects for the improvement of the state

28-17    highway system.  Revenue generated from toll charges and

28-18    administrative fees assessed by an entity with whom the commission

28-19    contracts under this section shall be allocated as required by the

28-20    terms of the agreement.

28-21          (e)  The powers granted by this section are subject to the

28-22    restrictions of 23 U.S.C. Section 129.

28-23          Sec. 224.155.  FAILURE OR REFUSAL TO PAY TOLL CHARGES.  Any

28-24    motor vehicle other than a police or emergency vehicle that is

28-25    driven or towed through a toll collection facility shall pay the

28-26    proper toll.

28-27          Sec. 224.156.  ADMINISTRATIVE FEE; NOTICE.  (a)  In the event

 29-1    of nonpayment of the proper toll, on issuance of proper notice of

 29-2    nonpayment, the registered owner of the nonpaying vehicle is

 29-3    legally bound to pay both the proper toll and an administrative

 29-4    fee.

 29-5          (b)  The commission by rule and a transportation corporation

 29-6    by order of its board of directors may respectively fix an

 29-7    administrative fee, not to exceed $100, to recover the cost of

 29-8    collecting an unpaid toll.  The notice of nonpayment to the

 29-9    registered owner shall be sent by the department by first-class

29-10    mail not later than 30 days after the date of the alleged failure

29-11    to pay and may require payment not sooner than 30 days after the

29-12    date the notice was mailed.  The registered owner shall pay a

29-13    separate toll and administrative fee for each event of nonpayment.

29-14          (c)  If the registered owner of the vehicle fails to pay the

29-15    proper toll and administrative fee within the time specified by the

29-16    notice of nonpayment issued under this section, the registered

29-17    owner shall be cited as for other traffic violations for the

29-18    nonpayment, and the owner is legally bound to pay a fine, not to

29-19    exceed $250, for each event of nonpayment.  Neither the legal

29-20    obligation to pay nor the actual payment of the fine affects the

29-21    legal duty of the owner for any other fine or penalty prescribed by

29-22    law.

29-23          Sec. 224.157.  PROSECUTIONS.  (a)  In the prosecution of a

29-24    violation under Sections 224.155 and 224.156, proof that the

29-25    vehicle passed through a toll collection facility without payment

29-26    of the proper toll, together with proof that the defendant was the

29-27    registered owner of the vehicle when the failure to pay occurred,

 30-1    establishes the nonpayment of the registered owner.

 30-2          (b)  The court of the local jurisdiction in which the

 30-3    violation occurred may assess and collect the fine in addition to

 30-4    any court costs.  The court shall also collect the proper toll and

 30-5    administrative fee and forward the toll and fee to the department

 30-6    or to the transportation corporation.

 30-7          (c)  It is a defense to nonpayment under Section 224.155 or

 30-8    224.156 that the motor vehicle in question was stolen before the

 30-9    failure to pay the proper toll occurred and was not recovered by

30-10    the time of the failure to pay, but only if the theft was reported

30-11    to the appropriate law enforcement authority before the earlier of:

30-12                (1)  the occurrence of the failure to pay; or

30-13                (2)  eight hours after discovery of the theft.

30-14          (d)  A registered owner who is a lessor of a vehicle

30-15    concerning which a notice of nonpayment was issued under Section

30-16    224.156 is not liable in connection with that notice of nonpayment

30-17    if, not later than 30 days after the date the notice of nonpayment

30-18    is mailed, the registered owner provides to the department or the

30-19    transportation corporation a copy of the rental, lease, or other

30-20    contract document covering the vehicle on the date of the

30-21    nonpayment, with the name and address of the lessee clearly

30-22    legible.  Failure to provide this information within the period

30-23    prescribed renders the lessor liable as the registered owner.  If

30-24    the lessor provides the required information within the period

30-25    prescribed, the lessee of the vehicle on the date of the violation

30-26    is considered to be the owner of the vehicle for purposes of this

30-27    subchapter and is subject to prosecution for failure to pay the

 31-1    proper toll as if the lessee were the registered owner, if the

 31-2    department or the transportation corporation sends a notice of

 31-3    nonpayment to the lessee by first-class mail within 30 days after

 31-4    the date of receipt of the required information from the lessor.

 31-5          Sec. 224.158.  USE AND RETURN OF TRANSPONDERS.  (a)  For

 31-6    purposes of this section, a "transponder" means a device, placed on

 31-7    or within a motor vehicle, that is capable of transmitting

 31-8    information used to assess or collect tolls.  A transponder is

 31-9    "insufficiently funded" when there are no remaining funds in the

31-10    account in connection with which the transponder was issued.

31-11          (b)  Any law enforcement officer of the Department of Public

31-12    Safety has the authority to seize a stolen or insufficiently funded

31-13    transponder and to return it to the department or the

31-14    transportation corporation, except that an insufficiently funded

31-15    transponder may not be seized sooner than 30 days after the date

31-16    the department or the transportation corporation has sent a notice

31-17    of delinquency to the holder of the account.

31-18          Sec. 224.159.  ADOPTION OF RULES; PRESCRIBE FORMS.  The

31-19    commission shall adopt rules and prescribe forms to administer this

31-20    subchapter.

31-21          SECTION 1.25.  Section 431.073, Transportation Code, is

31-22    amended to read as follows:

31-23          Sec. 431.073.  PROJECT IN COUNTY OF 500,000 [1.5 MILLION] OR

31-24    MORE OR ADJACENT COUNTY.  (a)  This section applies only to a

31-25    corporation [in existence on August 31, 1991,] that was created by

31-26    the state or one or more counties or municipalities to implement a

31-27    transportation project in:

 32-1                (1)  a county with a population of 500,000 [1.5

 32-2    million] or more; or

 32-3                (2)  a county adjacent to a county described by

 32-4    Subdivision (1).

 32-5          (b)  If approved and authorized by the commission, a

 32-6    corporation created by the state has the rights, powers,

 32-7    privileges, authority, and functions given the department under

 32-8    this title to:

 32-9                (1)  construct, improve, operate, and maintain high

32-10    occupancy vehicle lanes; and

32-11                (2)  charge a toll for the use of one or more high

32-12    occupancy vehicle lanes for the purpose of congestion mitigation.

32-13          (c)  A corporation in existence on August 31, 1991, has the

32-14    powers, rights, and privileges of a corporation created under

32-15    Chapter 11, Title 32, Revised Statutes, as that law existed on

32-16    August 31, 1991, except that the required right-of-way of any

32-17    highway, road, street, or turnpike may be of the width required or

32-18    approved by the commission or each governing body creating the

32-19    corporation.

32-20          SECTION 1.26.  Section 224.033, Transportation Code, is

32-21    amended to read as follows:

32-22          Sec. 224.033.  COUNTY IMPROVEMENT OF STATE SYSTEM.  (a)  The

32-23    commission may enter into an agreement with the commissioners court

32-24    of a county [may contract with the department] for the improvement

32-25    by the county of the state highway system.

32-26          (b)  In this section, "improvement" means construction,

32-27    reconstruction, maintenance, and the making of a necessary plan or

 33-1    survey before beginning construction, reconstruction, or

 33-2    maintenance and includes a project or activity[:]

 33-3                [(1)]  appurtenant to a state highway and including

 33-4    drainage facilities, surveying, traffic counts, driveways,

 33-5    landscaping, signs, lights, or guardrails[; or]

 33-6                [(2)  involving maintenance of a state highway and

 33-7    appurtenant facilities].

 33-8          SECTION 1.27.  Section 251.014, Transportation Code, is

 33-9    amended to read as follows:

33-10          Sec. 251.014.  COUNTY IMPROVEMENT OF STATE HIGHWAY.  (a)  The

33-11    commissioners court of a county may enter into an agreement

33-12    [contract] with the commission [department] for the county to carry

33-13    out a project or activity for the improvement of a segment of the

33-14    state highway system.

33-15          (b)  In this section, "improvement" means construction,

33-16    reconstruction, maintenance, and the making of a necessary plan or

33-17    survey before beginning construction, reconstruction, or

33-18    maintenance and includes a [if the] project or activity[:]

33-19                [(1)  is] appurtenant to a state highway, including

33-20    surveying, making a traffic count, or landscaping or an activity

33-21    relating to a drainage facility, driveway, sign, light, or

33-22    guardrail[; or]

33-23                [(2)  involves maintenance of a state highway or

33-24    appurtenant facility].

33-25          SECTION 1.28.  Chapter 455, Transportation Code, is amended

33-26    by adding Section 455.0015 to read as follows:

33-27          Sec. 455.0015.  TRANSPORTATION NEEDS OF CLIENTS OF HEALTH AND

 34-1    HUMAN SERVICES AGENCIES.  In performing its public transportation

 34-2    planning and funding activities, the department shall consider and

 34-3    include the transportation needs of those persons who are clients

 34-4    of the health and human services agencies of this state.

 34-5          SECTION 1.29.  Section 623.074, Transportation Code, is

 34-6    amended by adding Subsection (d) to read as follows:

 34-7          (d)  The department may by rule authorize an applicant to

 34-8    submit an application electronically.  An electronically submitted

 34-9    application shall be considered signed if a digital signature is

34-10    transmitted with the application and intended by the applicant to

34-11    authenticate the application.  For purposes of this subsection,

34-12    "digital signature" means an electronic identifier intended by the

34-13    person using it to have the same force and effect as the use of a

34-14    manual signature.

34-15          SECTION 1.30.  (a)  Not later than April 30, 1998, the Texas

34-16    Department of Transportation shall complete a study of alternative

34-17    routes for a second transportation link from the mainland to South

34-18    Padre Island that would:

34-19                (1)  provide an alternative for emergency ingress or

34-20    egress for permanent residents and daily and overnight visitors;

34-21                (2)  better disperse the traffic on the island to

34-22    reduce congestion at the southern end of the island;

34-23                (3)  reduce the travel time and cost by providing a

34-24    more direct route to the island from upper Rio Grande Valley

34-25    locations and provide relief to traffic congestion in

34-26    municipalities along existing highway routes; and

34-27                (4)  give priority to environmentally friendly

 35-1    alternative options, such as a light-rail highway combination, that

 35-2    could be anchored at the Valley International Airport and the South

 35-3    Padre Convention Center or at other logical destinations.

 35-4          (b)  The Texas Department of Transportation shall, not later

 35-5    than December 31, 1998, report to the legislature on the

 35-6    department's plans to implement the recommendations of the study

 35-7    described by Subsection (a) of this section.

 35-8          SECTION 1.31.  Subsection (b), Section 201.109,

 35-9    Transportation Code, is amended to read as follows:

35-10          (b)  In carrying out this section, the commission shall

35-11    provide for:

35-12                (1)  maximizing the generation of revenue from existing

35-13    assets of the department, including real estate;

35-14                (2)  increasing the role of the private sector and

35-15    public-private projects in the leasing of real estate and other

35-16    assets in the development of highway projects;

35-17                (3)  setting and attempting to meet annual revenue

35-18    enhancement goals;

35-19                (4)  reporting on the progress in meeting revenue

35-20    enhancement goals in the department's annual report; [and]

35-21                (5)  contracting for an independent audit of the

35-22    department's management and business operations in 2001 and each

35-23    12th year after 2001; and

35-24                (6)  developing a cost-benefit analysis between the use

35-25    of local materials previously incorporated into roadways versus use

35-26    of materials blended or transported from other sources.

35-27          SECTION 1.32.  Subchapter C, Chapter 791, Government Code, is

 36-1    amended by adding Section 791.031 to read as follows:

 36-2          Sec. 791.031.  TRANSPORTATION INFRASTRUCTURE.  (a)  This

 36-3    section applies only to a local government, other than a school

 36-4    district, that is authorized to impose ad valorem taxes on real

 36-5    property.

 36-6          (b)  The Texas Department of Transportation may enter into an

 36-7    interlocal contract with a local government for the financing of

 36-8    transportation infrastructure that is constructed or that is to be

 36-9    constructed in the territory of the local government by the

36-10    department in a corridor of land on which no existing state or

36-11    federal highway is located.

36-12          (c)  The agreement must include:

36-13                (1)  the duration of the agreement, which may not

36-14    exceed 12 years;

36-15                (2)  a description of each transportation

36-16    infrastructure project or proposed project;

36-17                (3)  a map showing the location of each project and

36-18    property included in the contract; and

36-19                (4)  an estimate of the cost of each project.

36-20          (d)  The agreement may establish one or more transportation

36-21    infrastructure zones.  The Texas Department of Transportation and

36-22    the local government may agree that at one or more specified times,

36-23    the local government will pay to the Texas Department of

36-24    Transportation an amount that is calculated on the basis of

36-25    increased ad valorem tax collections in a zone that are

36-26    attributable to increased values of property located in the zone

36-27    resulting from an infrastructure project.  The amount may not

 37-1    exceed an amount that is equal to 30 percent of the increase in ad

 37-2    valorem tax collections for the specified period.

 37-3          (e)  Money received by the Texas Department of Transportation

 37-4    under this section may be used:

 37-5                (1)  to provide a local match for the acquisition of

 37-6    right-of-way in the territory of the local government; or

 37-7                (2)  for design, construction, operation, or

 37-8    maintenance of transportation facilities in the territory of the

 37-9    local government.

37-10          SECTION 1.33.  As soon as practicable, the Texas Department

37-11    of Transportation, using funds authorized by minute order 106860

37-12    passed by the Texas Transportation Commission on June 18, 1996,

37-13    shall conduct a study to explore whether it is practical for the

37-14    department to develop and carry out a statewide Type II Noise

37-15    Abatement Program.

37-16                      ARTICLE 2.  OUTDOOR ADVERTISING

37-17          SECTION 2.01.  Section 391.065, Transportation Code, is

37-18    amended by adding Subsection (c) to read as follows:

37-19          (c)  The commission may not adopt a rule under this chapter

37-20    that restricts competitive bidding or advertising by the holder of

37-21    a license issued under this chapter other than a rule to prohibit

37-22    false, misleading, or deceptive practices.  The limitation provided

37-23    by this section applies only to rules relating to the occupation of

37-24    outdoor advertiser and does not affect the commission's power to

37-25    regulate the orderly and effective display of outdoor advertising

37-26    under this chapter.  A rule to prohibit false, misleading, or

37-27    deceptive practices may not:

 38-1                (1)  restrict the use of:

 38-2                      (A)  any legal medium for an advertisement;

 38-3                      (B)  the license holder's advertisement under a

 38-4    trade name; or

 38-5                      (C)  the license holder's personal appearance or

 38-6    voice in an advertisement, if the license holder is an individual;

 38-7    or

 38-8                (2)  relate to the size or duration of an advertisement

 38-9    by the license holder.

38-10          SECTION 2.02.  Section 391.062, Transportation Code, is

38-11    amended by adding Subsection (c) to read as follows:

38-12          (c)  At least 30 days before the date on which a person's

38-13    license expires, the commission shall notify the person of the

38-14    impending expiration.  The notice must be in writing and sent to

38-15    the person's last known address according to the records of the

38-16    commission.

38-17          SECTION 2.03.  Subsection (a), Section 391.066,

38-18    Transportation Code, is amended to read as follows:

38-19          (a)  The commission may revoke or suspend a license issued

38-20    under this subchapter or place on probation a license holder whose

38-21    license is suspended if the license holder violates this chapter or

38-22    a rule adopted under this chapter.  If the suspension of the

38-23    license is probated, the department may require the license holder

38-24    to report regularly to the commission on any matter that is the

38-25    basis of the probation.

38-26          SECTION 2.04.  Subchapter D, Chapter 391, Transportation

38-27    Code, is amended by adding Sections 391.097 and 391.098 to read as

 39-1    follows:

 39-2          Sec. 391.097.  MAJOR AGRICULTURAL INTEREST SIGN.  (a)  In

 39-3    this section:

 39-4                (1)  "Eligible rural highway" means a highway that:

 39-5                      (A)  has noncontrolled access; and

 39-6                      (B)  is outside the corporate limits of a

 39-7    municipality.

 39-8                (2)  "Major agricultural interest" means a farm, ranch,

 39-9    winery, nursery, greenhouse, or other facility that:

39-10                      (A)  sows or cultivates an agricultural product;

39-11                      (B)  devotes a minimum of five acres of land to

39-12    the production of the agricultural product;

39-13                      (C)  markets the product on the premises as a

39-14    retail sale of the product; and

39-15                      (D)  conducts public tours of the grounds or

39-16    facilities.

39-17          (b)  The commission shall enter into one or more contracts

39-18    with an individual, firm, group, or association in this state to

39-19    erect and maintain major agricultural interest signs at appropriate

39-20    locations along eligible rural highways.

39-21          (c)  A contract under this section shall provide for:

39-22                (1)  the assessment of fees to be paid to a contractor

39-23    by a commercial establishment of a major agricultural interest; and

39-24                (2)  remittance to the department of a portion of the

39-25    fees collected by the contractor in an amount sufficient to recover

39-26    the department's costs of administering the program.

39-27          (d)  To be eligible to have its name displayed on a major

 40-1    agricultural interest sign, a major agricultural interest must be

 40-2    located within five miles of an intersection with an eligible rural

 40-3    highway.

 40-4          (e)  A major agricultural interest sign must:

 40-5                (1)  have a brown background with a white reflective

 40-6    legend and border;

 40-7                (2)  not contain a corporate or trademark symbol; and

 40-8                (3)  not contain a message, symbol, or trademark that

 40-9    resembles an official traffic control device.

40-10          (f)  The commission shall:

40-11                (1)  regulate the content, composition, placement,

40-12    erection, and maintenance of major agricultural interest signs and

40-13    supports on an eligible rural highway right-of-way; and

40-14                (2)  adopt rules necessary to administer and enforce

40-15    this section.

40-16          Sec. 391.098.  VARIANCES.  (a)  The commission shall

40-17    authorize the director to grant variances, on a case-by-case basis,

40-18    to the eligibility, location, or placement of specific logo signs,

40-19    major agricultural interest signs, and major shopping area guide

40-20    signs, including the highways along which a sign may be located.

40-21    The commission may adopt rules prescribing conditions or guidelines

40-22    the director should or must consider when determining whether to

40-23    grant a variance.

40-24          (b)  The director may grant a variance if the director

40-25    determines that:

40-26                (1)  the variance would promote traffic safety;

40-27                (2)  the variance would improve traffic flow;

 41-1                (3)  an overpass, highway sign, or other highway

 41-2    structure unduly obstructs the visibility of an existing commercial

 41-3    sign; or

 41-4                (4)  the variance would satisfy other conditions or

 41-5    guidelines prescribed by commission rules authorizing the granting

 41-6    of variances.

 41-7          (c)  The director may not grant a variance to the

 41-8    requirements of this subchapter regarding supports, content, or

 41-9    composition of signs.

41-10          SECTION 2.05.  Section 394.003, Transportation Code, is

41-11    amended by adding Subsection (c) to read as follows:

41-12          (c)  This chapter does not apply to a directional sign for a

41-13    small business, as defined  by Section 2006.001, Government Code,

41-14    if the sign:

41-15                (1)  is on private property; and

41-16                (2)  has a surface area not larger than 50 square feet.

41-17          SECTION 2.06.  Subsection (b), Section 394.021,

41-18    Transportation Code, is amended to read as follows:

41-19          (b)  Except as otherwise authorized by this chapter, the

41-20    commission may not issue a permit for an off-premise sign unless

41-21    the sign is to be located:

41-22                (1)  within 800 feet of a [one or more] recognized

41-23    commercial or industrial business activity or the office of a

41-24    governmental entity [activities]; and

41-25                (2)  on the same side of the road as the business

41-26    activity or the office of the governmental entity [activities].

41-27              ARTICLE 3.  TEXAS MOTOR VEHICLE COMMISSION CODE

 42-1          SECTION 3.01.  Section 2.02A, Texas Motor Vehicle Commission

 42-2    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

 42-3    to read as follows:

 42-4          Sec. 2.02A.  APPOINTMENTS.  Appointments to the Commission

 42-5    shall be made without [with due] regard to [for] the race, color,

 42-6    disability, sex, religion, or [ethnicity, gender, and] national

 42-7    origin of the appointees.

 42-8          SECTION 3.02.  Subchapter B, Texas Motor Vehicle Commission

 42-9    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

42-10    by adding Section 2.03A to read as follows:

42-11          Sec. 2.03A.  TRAINING ON DEPARTMENT AND CERTAIN LAWS RELATING

42-12    TO DEPARTMENT.  (a)  To be eligible to take office as a member of

42-13    the Commission, a person appointed to the Commission must complete

42-14    at least one course of a training program that complies with this

42-15    section.

42-16          (b)  The training program must provide information to the

42-17    person regarding:

42-18                (1)  this Act;

42-19                (2)  the programs operated by the department;

42-20                (3)  the role and functions of the department;

42-21                (4)  the rules of the department with an emphasis on

42-22    the rules that relate to disciplinary and investigatory authority;

42-23                (5)  the current budget for the department;

42-24                (6)  the results of the most recent formal audit of the

42-25    department;

42-26                (7)  the requirements of the:

42-27                      (A)  open meetings law, Chapter 551, Government

 43-1    Code;

 43-2                      (B)  open records law, Chapter 552, Government

 43-3    Code; and

 43-4                      (C)  administrative procedure law, Chapter 2001,

 43-5    Government Code;

 43-6                (8)  the requirements of the conflict of interest laws

 43-7    and other laws relating to public officials; and

 43-8                (9)  any applicable ethics policies adopted by the

 43-9    Commission or the Texas Ethics Commission.

43-10          (c)  A person appointed to the Commission is entitled to

43-11    reimbursement for travel expenses incurred in attending the

43-12    training program, as provided by the General Appropriations Act and

43-13    as if the person were a member of the Commission.

43-14          SECTION 3.03.  Subsection (b), Section 2.08, Texas Motor

43-15    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

43-16    Statutes), is amended to read as follows:

43-17          (b)  The Commission is subject to Chapters 551 and 2001,

43-18    Government Code [the open meetings law, Chapter 271, Acts of the

43-19    60th Legislature, Regular Session, 1967, as amended (Article

43-20    6252-17, Vernon's Texas Civil Statutes)].

43-21          SECTION 3.04.  Subsection (c), Section 2.08A, Texas Motor

43-22    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

43-23    Statutes), is amended to read as follows:

43-24          (c)  If the Executive Director has knowledge that a potential

43-25    ground for removal exists, the Executive Director shall notify the

43-26    Chairman of the Commission of the ground.  The Chairman shall then

43-27    notify the Governor and the Attorney General that a potential

 44-1    ground for removal exists.  If the potential ground for removal

 44-2    relates to the Chairman of the Commission, the Executive Director

 44-3    shall notify the Vice-chairman of the Commission, who shall notify

 44-4    the Governor and the Attorney General that a potential ground for

 44-5    removal exists.

 44-6          SECTION 3.05.  Subsection (e), Section 2.09, Texas Motor

 44-7    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

 44-8    Statutes), is amended to read as follows:

 44-9          (e)  The Executive Director shall appoint and employ such

44-10    Commission staff as are necessary to carry out the duties and

44-11    functions of the Executive Director and the Commission under this

44-12    Act.  The Commission shall develop and implement policies that

44-13    clearly separate the policy-making [define the respective]

44-14    responsibilities of the Commission and the management

44-15    responsibilities of the Executive Director and staff of the

44-16    Commission.

44-17          SECTION 3.06.  Subsection (b), Section 2.10, Texas Motor

44-18    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

44-19    Statutes), is amended to read as follows:

44-20          (b)  The Commission shall file annually with the Governor and

44-21    the presiding officer of each house of the legislature a complete

44-22    and detailed written report accounting for all funds received and

44-23    disbursed by the Commission during the preceding fiscal year.  The

44-24    annual report must comply with each reporting requirement

44-25    applicable to financial reporting [be in the form and reported in

44-26    the time] provided by the General Appropriations Act.

44-27          SECTION 3.07.  Section 2.12, Texas Motor Vehicle Commission

 45-1    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

 45-2    to read as follows:

 45-3          Sec. 2.12.  COMPLAINTS.  (a)  The Commission shall:

 45-4                (1)  keep an information file about each complaint

 45-5    filed with the Commission that the Commission has authority to

 45-6    resolve; and

 45-7                (2)  provide the person who filed the complaint, and

 45-8    each person or entity that is the subject of the complaint,

 45-9    information about the Commission's policies and procedures relating

45-10    to complaint investigation and resolution.

45-11          (b)  If a written complaint is filed with the Commission that

45-12    the Commission has authority to resolve, the Commission, at least

45-13    quarterly and until final disposition of the complaint, shall

45-14    notify the parties to the complaint of the status of the complaint

45-15    unless the notice would jeopardize an ongoing Commission

45-16    investigation.

45-17          (c)  With regard to each complaint filed with the Commission,

45-18    the Commission shall keep the following information:

45-19                (1)  the date the complaint is filed;

45-20                (2)  the name of the person filing the complaint;

45-21                (3)  the subject matter of the complaint;

45-22                (4)  a record of each person contacted in relation to

45-23    the complaint;

45-24                (5)  a summary of the results of the review or

45-25    investigation of the complaint; and

45-26                (6)  if the Commission takes no action on the

45-27    complaint, an explanation of the reasons that no action was taken.

 46-1          SECTION 3.08.  Subsections (a), (b), and (d), Section 2.13,

 46-2    Texas Motor Vehicle Commission Code (Article 4413(36), Vernon's

 46-3    Texas Civil Statutes), are amended to read as follows:

 46-4          (a)  The Executive Director or his designee shall develop an

 46-5    intraagency career ladder program that addresses opportunities for

 46-6    mobility and advancement of employees in the Commission.  The

 46-7    program shall require intraagency postings of all [nonentry level]

 46-8    positions concurrently with any public posting.

 46-9          (b)  The Executive Director or his designee shall develop a

46-10    system of annual performance evaluations that are based on

46-11    documented employee performance.  All merit pay for Commission

46-12    employees must be based on the system established under this

46-13    subsection.

46-14          (d)  The Executive Director or his designee shall prepare and

46-15    maintain a written policy statement to assure implementation of a

46-16    program of equal employment opportunity under which all personnel

46-17    transactions are made without regard to race, color, disability

46-18    [handicap], sex, religion, age, or national origin.  The policy

46-19    statement must include:

46-20                (1)  personnel policies, including policies relating to

46-21    recruitment, evaluation, selection, appointment, training, and

46-22    promotion of personnel that comply with Chapter 21, Labor Code;

46-23                (2)  a comprehensive analysis of the Commission work

46-24    force that meets federal and state laws, rules, and regulations,

46-25    and instructions directly adopted under those laws, rules, or

46-26    regulations [guidelines];

46-27                (3)  procedures by which a determination can be made of

 47-1    significant underuse in the Commission work force of all persons

 47-2    for whom federal or state laws, rules, and regulations, and

 47-3    instructions directly adopted under those laws, rules, or

 47-4    regulations, [guidelines] encourage a more equitable balance; and

 47-5                (4)  reasonable methods to appropriately address those

 47-6    areas of significant underuse.

 47-7          A policy statement prepared under this subsection must cover

 47-8    an annual period, be updated at least annually, be reviewed by the

 47-9    Texas Commission on Human Rights for compliance with Subdivision

47-10    (1) of this subsection, and be filed with the Governor's office.

47-11          The Governor's office shall deliver a biennial report to the

47-12    legislature based on the information received under this

47-13    subsection.  The report may be made separately or as a part of

47-14    other biennial reports made to the legislature.

47-15          SECTION 3.09.  Section 4.01B, Texas Motor Vehicle Commission

47-16    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

47-17    to read as follows:

47-18          Sec. 4.01B.  [NOTICE OF] LICENSE EXPIRATION.  (a)  The

47-19    Commission by rule may implement a system under which licenses

47-20    expire on various dates during the year.

47-21          (b)  The Commission shall notify each person licensed under

47-22    this Act of the date of license expiration and the amount of the

47-23    fee required for license renewal.  The notice shall be mailed at

47-24    least thirty days before the date of license expiration.

47-25          (c)  For a year in which a license expiration date is

47-26    changed, the fee for the license shall be prorated so that the

47-27    holder of the license pays only that portion of the license fee

 48-1    that is allocable to the number of months during which the license

 48-2    is valid.  On renewal of the license on the new expiration date,

 48-3    the entire license renewal fee is payable.

 48-4                        ARTICLE 4.  MOTOR CARRIERS

 48-5          SECTION 4.01.  Subsection (i), Section 3, Article 6675c,

 48-6    Revised Statutes, is amended to read as follows:

 48-7          (i)  A registration issued under this article is valid for

 48-8    one year.  The department may adopt a system under which

 48-9    registrations expire at different times during the year.  At least

48-10    30 days before the date on which a motor carrier's registration

48-11    expires, the department shall notify the carrier of the impending

48-12    expiration.  The notice must be in writing and sent to the motor

48-13    carrier's last known address according to the records of the

48-14    department.  A motor carrier may renew a registration under this

48-15    article by:

48-16                (1)  supplementing the application with any new

48-17    information required under Subsection (g) of this section;

48-18                (2)  paying a $10 fee for each vehicle requiring

48-19    registration the carrier operates; and

48-20                (3)  showing the department evidence of continuing

48-21    insurance or financial responsibility in an amount at least equal

48-22    to the amount set by the department under Section 4(a) of this

48-23    article.

48-24          SECTION 4.02.  Section 7, Article 6675c, Revised Statutes, is

48-25    amended to read as follows:

48-26          Sec. 7.  Suspension and revocation of registration.  (a)  The

48-27    department may suspend or revoke a registration issued under this

 49-1    article or place on probation a motor carrier whose registration is

 49-2    suspended if:

 49-3                (1)  a motor carrier fails to maintain insurance as

 49-4    required by Section 4(a) or (b) of this article;

 49-5                (2)  a motor carrier fails to keep proof of insurance

 49-6    in the cab of each vehicle as required by Section 4(e) of this

 49-7    article;

 49-8                (3)  a motor carrier fails to register a vehicle

 49-9    requiring registration; or

49-10                (4)  a motor carrier knowingly provides false

49-11    information on any form filed with the department under this

49-12    section.

49-13          (b)  The Department of Public Safety may request that the

49-14    department suspend or revoke a registration issued under this

49-15    article or place on probation a motor carrier whose registration is

49-16    suspended if a motor carrier:

49-17                (1)  has an unsatisfactory safety rating under 49

49-18    C.F.R. Part 385; or

49-19                (2)  has multiple violations of a provision of Article

49-20    6675d, Revised Statutes, a rule adopted under that article, or the

49-21    Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's

49-22    Texas Civil Statutes).

49-23          (c)  Except as provided by Subsection (d) of this section, a

49-24    suspension or revocation or the imposition of probation made under

49-25    Subsection (a) or (b) of this section is a contested case under

49-26    Chapter 2001, Government Code.

49-27          (d)  The department may suspend or revoke a registration

 50-1    issued under this article or place on probation a motor carrier

 50-2    whose registration is suspended without a hearing under Chapter

 50-3    2001, Government Code, if:

 50-4                (1)  the department provides notice to the motor

 50-5    carrier of:

 50-6                      (A)  the proposed suspension or revocation; and

 50-7                      (B)  the right of the carrier to request a

 50-8    hearing under Chapter 2001, Government Code; and

 50-9                (2)  the motor carrier fails to provide the department

50-10    with a written request for a hearing within 10 days after the date

50-11    the carrier receives the notice described in Subdivision (1) of

50-12    this subsection.

50-13          (e)  If the suspension of a motor carrier's registration is

50-14    probated, the department may require the carrier to report

50-15    regularly to the department on any matter that is the basis of the

50-16    probation.

50-17          SECTION 4.03.  Section 8, Article 6675c, Revised Statutes, is

50-18    amended by adding Subsection (g) to read as follows:

50-19          (g)  The department may not by rule restrict competitive

50-20    bidding or advertising by a motor carrier except to prohibit false,

50-21    misleading, or deceptive practices.  A rule to prohibit false,

50-22    misleading, or deceptive practices may not:

50-23                (1)  restrict the use of:

50-24                      (A)  any medium for an advertisement;

50-25                      (B)  the motor carrier's advertisement under a

50-26    trade name; or

50-27                      (C)  the motor carrier's personal appearance or

 51-1    voice in an advertisement, if the motor carrier is an individual;

 51-2    or

 51-3                (2)  relate to the size or duration of an advertisement

 51-4    by the motor carrier.

 51-5                    ARTICLE 5.  SALVAGE VEHICLE DEALERS

 51-6          SECTION 5.01.  Section 1.02, Article 6687-1a, Revised

 51-7    Statutes, is amended by adding Subsection (c) to read as follows:

 51-8          (c)  The commission may not adopt a rule under this article

 51-9    that restricts competitive bidding or advertising by a person who

51-10    holds a license issued under this article other than a rule to

51-11    prohibit false, misleading, or deceptive practices.  A rule to

51-12    prohibit false, misleading, or deceptive practices may not:

51-13                (1)  restrict the use of:

51-14                      (A)  any medium for an advertisement;

51-15                      (B)  the license holder's advertisement under a

51-16    trade name; or

51-17                      (C)  the license holder's personal appearance or

51-18    voice in an advertisement, if the license holder is an individual;

51-19    or

51-20                (2)  relate to the size or duration of an advertisement

51-21    by the license holder.

51-22          SECTION 5.02.  Section 2.07, Article 6687-1a, Revised

51-23    Statutes, is amended to read as follows:

51-24          Sec. 2.07.  License Renewal.  (a)  A license issued under

51-25    this article expires on the first anniversary of the date of

51-26    issuance and may be renewed annually on or before the expiration

51-27    date on payment of the required renewal fee.

 52-1          (b)  A person who is otherwise eligible to renew a license

 52-2    may renew an unexpired license by paying to the department before

 52-3    the expiration date of the license the required renewal fee.  A

 52-4    person whose license has expired may not engage in the activities

 52-5    that require a license until the license has been renewed under the

 52-6    provisions of this section.

 52-7          (c)  If a person's license has been expired for 90 days or

 52-8    less, the person may renew the license by paying to the department

 52-9    one and one-half times the required renewal fee.

52-10          (d)  If a person's license has been expired for longer than

52-11    90 days but less than one year, the person may renew the license by

52-12    paying to the department two times the required renewal fee.

52-13          (e)  If a person's license has been expired for one year or

52-14    longer, the person may not renew the license.  The person may

52-15    obtain a new license by complying with the requirements and

52-16    procedures for obtaining an original license.  If the person was

52-17    licensed in this state, moved to another state, and has been doing

52-18    business in the other state for the two years preceding

52-19    application, the person may renew an expired license.  The person

52-20    must pay to the department a fee that is equal to two times the

52-21    required renewal fee for the license.

52-22          (f)  At least 30 days before the date on which a person's

52-23    license expires, the department shall notify the person of the

52-24    impending expiration.  The notice must be in writing and sent to

52-25    the person's last known address according to the records of the

52-26    department.  [If a license holder fails to renew the license before

52-27    its expiration date, the license holder may renew the license on

 53-1    payment of the renewal fee and a late fee set by the commission.

 53-2    If the license is not renewed before the first anniversary of the

 53-3    date on which the license expired, the license holder must apply

 53-4    for a new license in the same manner as an applicant for an initial

 53-5    license.]

 53-6          SECTION 5.03.  Subsection (b), Section 4.01, Article 6687-1a,

 53-7    Revised Statutes, is amended to read as follows:

 53-8          (b)  The commission shall adopt rules establishing the

 53-9    grounds for the denial, suspension, revocation, or reinstatement of

53-10    a license and establishing procedures for disciplinary actions.  A

53-11    rule adopted under this subsection may not conflict with a rule

53-12    adopted by the State Office of Administrative Hearings.

53-13                 ARTICLE 6.  VEHICLE STORAGE FACILITY ACT

53-14          SECTION 6.01.  Section 4, Vehicle Storage Facility Act

53-15    (Article 6687-9a, Revised Statutes), is amended by adding

53-16    Subsection (d) to read as follows:

53-17          (d)  The commission may not adopt a rule under this Act that

53-18    restricts competitive bidding or advertising by a person who holds

53-19    a license issued under this Act other than a rule to prohibit

53-20    false, misleading, or deceptive practices.  A rule to prohibit

53-21    false, misleading, or deceptive practices may not:

53-22                (1)  restrict the use of:

53-23                      (A)  any medium for an advertisement;

53-24                      (B)  the license holder's advertisement under a

53-25    trade name; or

53-26                      (C)  the license holder's personal appearance or

53-27    voice in an advertisement, if the license holder is an individual;

 54-1    or

 54-2                (2)  relate to the size or duration of an advertisement

 54-3    by the license holder.

 54-4          SECTION 6.02.  Subsection (a), Section 9, Vehicle Storage

 54-5    Facility Act (Article 6687-9a, Revised Statutes), is amended to

 54-6    read as follows:

 54-7          (a)  A license issued under this article is valid for the

 54-8    period set by the commission.  At least 30 days before the date on

 54-9    which a person's license expires, the commission shall notify the

54-10    person of the impending expiration.  The notice must be in writing

54-11    and sent to the person's last known address according to the

54-12    records of the commission.

54-13          SECTION 6.03.  Section 10, Vehicle Storage Facility Act

54-14    (Article 6687-9a, Revised Statutes), is amended by adding

54-15    Subsections (e) and (f) to read as follows:

54-16          (e)  If the commission places a person on probation under

54-17    this section, the commission may require the person to report

54-18    regularly to the commission on any matter that is the basis of the

54-19    probation.

54-20          (f)  If the commission proposes to take an action under

54-21    Subsection (a) or (b) of this section, the person is entitled to a

54-22    hearing conducted by the State Office of Administrative Hearings.

54-23    Proceedings for a disciplinary action are governed by the

54-24    administrative procedure law, Chapter 2001, Government Code.  Rules

54-25    of practice adopted by the commission under Section 2001.004,

54-26    Government Code, applicable to the proceedings for a disciplinary

54-27    action may not conflict with rules adopted by the State Office of

 55-1    Administrative Hearings.

 55-2                           ARTICLE 7.  TURNPIKES

 55-3          SECTION 7.01.  Chapter 222, Transportation Code, is amended

 55-4    by adding Subchapter E to read as follows:

 55-5                      SUBCHAPTER E.  TOLL FACILITIES

 55-6          Sec. 222.101.  EXPENDITURE OF MONEY.  The department may

 55-7    spend money from any source for the construction, maintenance, and

 55-8    operation of toll facilities.

 55-9          Sec. 222.102.  TEMPORARY TOLL PROJECTS.  The department may

55-10    recover the cost of a preventative maintenance or rehabilitation

55-11    project on a nontoll segment of the state highway system by

55-12    temporarily imposing a toll charge if the commission determines the

55-13    segment is subject to heavy passenger and commercial traffic.

55-14          Sec. 222.103.  COST PARTICIPATION.  (a)  The department may

55-15    participate in the cost of the construction, maintenance, or

55-16    operation of a toll facility of a public or private entity on terms

55-17    and conditions established by the commission, including

55-18    requirements for repayment.  The department may not participate in

55-19    the cost of a toll facility of a private entity unless the

55-20    commission determines the facility fills a demonstrated public

55-21    need.

55-22          (b)  An entity receiving cost participation from the

55-23    department under this section is a successor agency to the Texas

55-24    Turnpike Authority for the purposes of Section 52-b, Article III,

55-25    Texas Constitution.

55-26          SECTION 7.02.  Section 362.055, Transportation Code, is

55-27    amended to read as follows:

 56-1          Sec. 362.055.  EXCEPTION.  This subchapter does not apply to:

 56-2                (1)  a county that has a population of more than 1.5

 56-3    million; [or]

 56-4                (2)  a local government corporation created under

 56-5    Chapter 431 by a county that has a population of more than 1.5

 56-6    million; or

 56-7                (3)  a regional tollway authority created under Chapter

 56-8    366.

 56-9          SECTION 7.03.  Section 361.001, Transportation Code, is

56-10    amended to read as follows:

56-11          Sec. 361.001.  DEFINITIONS.  In this chapter:

56-12                (1)  "Authority" means the Texas Turnpike Authority

56-13    division of the Texas Department of Transportation [and includes

56-14    the entity that succeeds to the principal functions of the

56-15    authority or to whom by law the powers of the authority are given].

56-16                (2)  "Board" means the board of directors of the

56-17    authority.

56-18                (3)  ["Highway" means a road, highway, farm-to-market

56-19    road, or street under the supervision of the state or a political

56-20    subdivision of the state.]

56-21                [(4)]  "Owner" includes a person having title to or an

56-22    interest in any property, rights, easements, and interests

56-23    authorized to be acquired under this chapter.

56-24                (4) [(5)]  "Turnpike project" means a toll [an express]

56-25    highway constructed, maintained, or operated under this chapter as

56-26    part of the state highway system and any improvement, extension, or

56-27    expansion to the highway and includes:

 57-1                      (A)  a facility to relieve traffic congestion and

 57-2    promote safety;

 57-3                      (B)  a bridge, tunnel, overpass, underpass,

 57-4    interchange, entrance plaza, approach, toll house, or service

 57-5    station;

 57-6                      (C)  an administration, storage, or other

 57-7    building the authority considers necessary to operate the project;

 57-8    and

 57-9                      (D)  property rights, easements, and interests

57-10    the authority acquires to construct or operate the project.

57-11                (5)  "Regional tollway authority" means a regional

57-12    tollway authority created under Chapter 366.

57-13          SECTION 7.04.  Section 361.031, Transportation Code, is

57-14    amended to read as follows:

57-15          Sec. 361.031.  TEXAS TURNPIKE AUTHORITY.  (a)  The Texas

57-16    Turnpike Authority is a division of the Texas Department of

57-17    Transportation that has full authority to exercise all powers

57-18    granted to it under this chapter.  Powers granted to the department

57-19    under this chapter, Chapter 362, and Subchapter E, Chapter 222, to

57-20    study, design, construct, operate, expand, enlarge, or extend a

57-21    turnpike project as a part of the state highway system shall be

57-22    exercised by the department acting by and through the authority

57-23    [state agency].

57-24          (b)  The authority may perform, procure from other divisions

57-25    of the department with the consent of the department, or procure

57-26    from outside service providers any portion of the services the

57-27    authority requires for:

 58-1                (1)  right-of-way acquisition;

 58-2                (2)  roadway finance, design, and construction;

 58-3                (3)  environmental affairs; or

 58-4                (4)  legal services.

 58-5          (c)  With the approval of the commission, the authority may

 58-6    perform, procure from other divisions of the department with the

 58-7    consent of the department, or procure from outside service

 58-8    providers any portion of the services the authority requires for

 58-9    roadway maintenance or traffic operations.

58-10          (d)  To perform its functions under this chapter, the

58-11    authority may use the facilities and personnel of the department in

58-12    the same manner as other divisions of the department.

58-13          (e)  If the comptroller assigns numbers to state agencies for

58-14    accounting purposes, the comptroller shall assign a separate agency

58-15    number to the authority [The authority shall locate offices in

58-16    Austin, Texas, on or before September 1, 1997].

58-17          (f) [(c)]  The exercise by the authority of the powers

58-18    conferred by this chapter in the construction, operation, and

58-19    maintenance of a turnpike project is:

58-20                (1)  in all respects for the benefit of the people of

58-21    this state, for the increase of their commerce and prosperity, and

58-22    for the improvement of their health and living conditions and

58-23    public safety; and

58-24                (2)  an essential governmental function of the state.

58-25          SECTION 7.05.  Subsection (a), Section 361.032,

58-26    Transportation Code, is amended to read as follows:

58-27          (a)  The board is composed of seven [12] directors.  The

 59-1    governor, with the advice and consent of the senate, shall appoint

 59-2    six [nine] directors who represent the public.  The chair of the

 59-3    [Each] commission or a member of the commission designated by the

 59-4    chair serves as an ex officio board member.

 59-5          SECTION 7.06.  Subsection (a), Section 361.033,

 59-6    Transportation Code, is amended to read as follows:

 59-7          (a)  A person is not eligible for appointment to the board if

 59-8    the person or the person's spouse:

 59-9                (1)  is registered, certified, or licensed by an

59-10    occupational regulatory agency in the field of toll road

59-11    construction, maintenance, or operation;

59-12                (2)  is employed by or participates in the management

59-13    of a business entity or other organization regulated by the

59-14    commission, department, or authority or receiving funds from the

59-15    commission, department, or authority;

59-16                (3)  owns or controls, directly or indirectly, more

59-17    than a 10 percent interest in a business entity or other

59-18    organization regulated by or receiving funds from the commission,

59-19    department, or authority, other than compensation for acquisition

59-20    of turnpike right-of-way; or

59-21                (4)  uses or receives a substantial amount of tangible

59-22    goods, services, or funds from the commission, department, or

59-23    authority, other than compensation or reimbursement authorized by

59-24    law for board membership, attendance, or expenses or compensation

59-25    for acquisition of turnpike right-of-way.

59-26          SECTION 7.07.  Subchapter B, Chapter 361, Transportation

59-27    Code, is amended by adding Section 361.0335 to read as follows:

 60-1          Sec. 361.0335.  TRAINING FOR BOARD MEMBERS.  (a)  To be

 60-2    eligible to take office as a member of the board, a person

 60-3    appointed to the board must complete at least one course of a

 60-4    training program that complies with this section.

 60-5          (b)  A training program must provide information to the

 60-6    person regarding:

 60-7                (1)  this chapter;

 60-8                (2)  the programs operated by the board;

 60-9                (3)  the role and functions of the board;

60-10                (4)  the rules of the board;

60-11                (5)  the current budget for the board;

60-12                (6)  the results of the most recent formal audit of the

60-13    board;

60-14                (7)  the requirements of the:

60-15                      (A)  open meetings law, Chapter 551, Government

60-16    Code;

60-17                      (B)  open records law, Chapter 552, Government

60-18    Code; and

60-19                      (C)  administrative procedure law, Chapter 2001,

60-20    Government Code;

60-21                (8)  the requirements of the conflict of interest laws

60-22    and other laws relating to public officials; and

60-23                (9)  any applicable ethics policies adopted by the

60-24    board or the Texas Ethics Commission.

60-25          (c)  A person appointed to the board is entitled to

60-26    reimbursement for travel expenses incurred in attending the

60-27    training program, as provided by the General Appropriations Act and

 61-1    as if the person were a member of the board.

 61-2          SECTION 7.08.  Section 361.042, Transportation Code, is

 61-3    amended to read as follows:

 61-4          Sec. 361.042.  GENERAL POWERS AND DUTIES.  (a)  The board

 61-5    [authority] shall:

 61-6                (1)  on its own initiative or at the request of the

 61-7    commission, consider, study, plan, and develop turnpike projects

 61-8    under this chapter;

 61-9                (2)  adopt rules [bylaws] for the regulation of its

61-10    affairs and the conduct of its business;

61-11                (3)  with the concurrence of the commission, employ an

61-12    administrative head, who serves at the pleasure of the board; and

61-13                (4)  undertake such other duties as are delegated to it

61-14    by the commission.

61-15          (b)  The authority may:

61-16                (1) [(2)  adopt an official seal;]

61-17                [(3)]  construct, maintain, repair, and operate

61-18    turnpike projects in this state;

61-19                (2) [(4)]  acquire, hold, and dispose of property in

61-20    the exercise of its powers and the performance of its duties under

61-21    this chapter;

61-22                (3)  with the approval of the governor and the

61-23    commission, [(5)] enter into contracts or operating agreements with

61-24    similar authorities or agencies of another state, including a state

61-25    of the United Mexican States;

61-26                (4) [(6)]  enter into contracts or agreements necessary

61-27    or incidental to its duties and powers under this chapter;

 62-1                (5) [(7)]  employ consulting engineers, [attorneys,]

 62-2    accountants, construction and financial experts, superintendents,

 62-3    managers, and other employees and agents the authority considers

 62-4    necessary and set their compensation;

 62-5                (6)  employ attorneys to advance or defend legal

 62-6    actions pertaining to the division's activities, notwithstanding

 62-7    any other law to the contrary, including Section 402.0212,

 62-8    Government Code;

 62-9                (7) [(8)]  receive grants for the construction of a

62-10    turnpike project and receive contributions of money, property,

62-11    labor, or other things of value from any source to be used for the

62-12    purposes for which the grants or contributions are made;

62-13                (8) [(9)]  adopt and enforce rules, if the commission

62-14    concurs, not inconsistent with this chapter for the use of any

62-15    turnpike project; and

62-16                (9) [(10)]  do all things necessary or appropriate to

62-17    carry out the powers expressly granted by this chapter.

62-18          SECTION 7.09.  Section 361.055, Transportation Code, is

62-19    amended to read as follows:

62-20          Sec. 361.055.  SUCCESSOR AGENCY TO AUTHORITY.  The following

62-21    are considered successor agencies to the Texas Turnpike Authority

62-22    [authority] for purposes of Section 52-b, Article III, Texas

62-23    Constitution:

62-24                (1)  a county, municipality, or local government

62-25    corporation that leases, buys, operates, or otherwise receives a

62-26    turnpike project under Subchapter H;

62-27                (2)  a county with a population of more than 1.5

 63-1    million that constructs a toll road, toll bridge, or turnpike

 63-2    project;

 63-3                (3)  a local government corporation serving a county

 63-4    with a population of more than 1.5 million that constructs a toll

 63-5    road, toll bridge, or turnpike project; [and]

 63-6                (4)  an adjacent county in a joint turnpike authority

 63-7    with a county with a population of more than 1.5 million that

 63-8    constructs a toll road, toll bridge, or turnpike project;

 63-9                (5)  the department;

63-10                (6)  a public entity authorized to receive funds from

63-11    the department for the construction, maintenance, or operation of

63-12    toll projects; and

63-13                (7)  a private entity authorized to receive funds from

63-14    the department for the construction, maintenance, or operation of

63-15    toll projects if the department determines that the use of the

63-16    private entity fills a demonstrated public need.

63-17          SECTION 7.10.  Section 361.132, Transportation Code, is

63-18    amended to read as follows:

63-19          Sec. 361.132.  ACQUISITION OF PROPERTY.  (a)  The board

63-20    [authority] may acquire, in the name of the state, [authority]

63-21    public or private real property it determines necessary or

63-22    convenient for the construction, expansion, enlargement, extension,

63-23    improvement, or operation of a turnpike project or for otherwise

63-24    carrying out this chapter.

63-25          (b)  The real property the authority may acquire under this

63-26    subchapter includes:

63-27                (1)  public parks, playgrounds, or reservations;

 64-1                (2)  parts of or rights in public parks, playgrounds,

 64-2    or reservations;

 64-3                (3)  rights-of-way;

 64-4                (4)  property rights, including:

 64-5                      (A)  a right of ingress or egress; and

 64-6                      (B)  a reservation right in real property that

 64-7    restricts or prohibits for not more than seven years the:

 64-8                            (i)  addition of a new improvement on the

 64-9    real property;

64-10                            (ii)  addition to or modification of an

64-11    existing improvement on the real property; or

64-12                            (iii)  subdivision of the real property;

64-13                (5)  franchises;

64-14                (6)  easements; and

64-15                (7)  other interests in real property.

64-16          (c)  The board [authority] may acquire the real property by

64-17    any method, including purchase and condemnation.  The board

64-18    [authority] may purchase public or private real property on the

64-19    terms and at the price the board [authority] and the owner consider

64-20    reasonable.

64-21          (d)  Property necessary or convenient for the construction or

64-22    operation of a turnpike project under Subsection (a) includes an

64-23    interest in real property, a property right, or materials that the

64-24    authority determines are necessary or convenient to:

64-25                (1)  protect a turnpike project;

64-26                (2)  drain a turnpike project;

64-27                (3)  divert a stream, river, or other watercourse from

 65-1    the right-of-way of a turnpike project;

 65-2                (4)  store materials or equipment used in the

 65-3    construction or maintenance of a turnpike project;

 65-4                (5)  construct or operate a warehouse or other facility

 65-5    used in connection with the construction, maintenance, or operation

 65-6    of a turnpike project;

 65-7                (6)  lay out, construct, or maintain a roadside park;

 65-8                (7)  lay out, construct, or maintain a parking lot that

 65-9    will contribute to the maximum use of a turnpike project with the

65-10    least possible congestion;

65-11                (8)  mitigate an adverse environmental effect that

65-12    directly results from the construction or maintenance of a turnpike

65-13    project; or

65-14                (9)  accomplish any other purpose related to the

65-15    location, construction, improvement, maintenance, beautification,

65-16    preservation, or operation of a turnpike project.

65-17          (e)  The authority shall comply with all relocation

65-18    assistance procedures applicable to the department in connection

65-19    with any displacement of owners or tenants as a consequence of the

65-20    authority's acquisition of real property under this chapter.

65-21          (f)  The authority may acquire timber, earth, stone, gravel,

65-22    or other materials as necessary to carry out a purpose under this

65-23    chapter.

65-24          SECTION 7.11.  Section 361.135, Transportation Code, is

65-25    amended to read as follows:

65-26          Sec. 361.135.  CONDEMNATION OF REAL PROPERTY.  (a)  The

65-27    board, with the concurrence of the commission, [authority] may

 66-1    acquire public or private real property in the name of the state

 66-2    [authority] by the exercise of the power of condemnation under the

 66-3    laws applicable to the exercise of that power on property for

 66-4    public use if:

 66-5                (1)  the authority and the owner cannot agree on a

 66-6    reasonable price for the property; or

 66-7                (2)  the owner is legally incapacitated, absent,

 66-8    unknown, or unable to convey title.

 66-9          (b)  The board, with the concurrence of the commission, [To

66-10    the extent provided by Subsection (c), the authority] may condemn

66-11    real property that the authority determines is:

66-12                (1)  necessary or appropriate to construct or to

66-13    efficiently operate a turnpike project;

66-14                (2)  necessary to restore public or private property

66-15    damaged or destroyed; [or]

66-16                (3)  necessary for access, approach, and interchange

66-17    roads; or

66-18                (4)  necessary otherwise to carry out this chapter.

66-19          (c)  [The authority may condemn real property necessary for

66-20    access, approach, and interchange roads but may not condemn

66-21    property:]

66-22                [(1)  that is unnecessary for road and right-of-way

66-23    purposes; or]

66-24                [(2)  that is for a supplemental facility for another

66-25    purpose.]

66-26          [(d)]  The authority may construct a supplemental facility

66-27    only on real property the authority purchases.

 67-1          (d) [(e)]  The court having jurisdiction of a condemnation

 67-2    proceeding may:

 67-3                (1)  make orders as are just to the authority and the

 67-4    owners of the real property; and

 67-5                (2)  require an undertaking or other security to secure

 67-6    the owners against any loss or damage by reason of the board's

 67-7    [authority's] failure to accept and pay for the real property.

 67-8          (e) [(f)]  An undertaking or security under Subsection (d)(2)

 67-9    [(e)(2)] or an act or obligation of the authority or the board does

67-10    not impose any liability on the state, [or] the authority, or the

67-11    board except liability that may be paid from the money authorized

67-12    by this chapter.

67-13          SECTION 7.12.  Section 361.136, Transportation Code, is

67-14    amended to read as follows:

67-15          Sec. 361.136.  SEVERANCE OF REAL PROPERTY.  (a)  If a

67-16    turnpike project severs an owner's real property, the authority

67-17    shall pay:

67-18                (1)  the value of the property acquired; and

67-19                (2)  the damages to the remainder of the owner's

67-20    property caused by the severance, including damages caused by the

67-21    inaccessibility of one tract from the other.

67-22          (b)  [The authority shall provide and maintain without charge

67-23    a passageway over or under the turnpike project for the owner of

67-24    the severed real property and the owner's employees and

67-25    representatives.  The authority is not required to furnish a

67-26    passageway if the owner waives the requirement or the original

67-27    tract involved is less than 80 acres.]

 68-1          [(c)]  The authority may negotiate for and purchase the

 68-2    severed real property or either part of the severed real property

 68-3    if the authority and the owner agree on terms for the purchase.

 68-4    [The authority shall sell and dispose of severed real property

 68-5    within two years after the date of acquisition.]

 68-6          SECTION 7.13.  Subsection (b), Section 361.137,

 68-7    Transportation Code, is amended to read as follows:

 68-8          (b)  The authority may not file the declaration of taking:

 68-9                (1)  before the 91st day after the date the

68-10    condemnation petition has been filed; or

68-11                (2)  [concurrently with or subsequent to the petition

68-12    but may not file the declaration] after the special commissioners

68-13    have made an award in the condemnation proceeding.

68-14          SECTION 7.14.  Subchapter D, Chapter 361, Transportation

68-15    Code, is amended by adding Section 361.142 to read as follows:

68-16          Sec. 361.142.  COVENANTS, CONDITIONS, RESTRICTIONS, OR

68-17    LIMITATIONS.  Covenants, conditions, restrictions, or limitations

68-18    affecting property acquired in any manner by the authority are not

68-19    binding against the authority and do not impair the authority's

68-20    ability to use the property for a purpose authorized by this

68-21    chapter.  The beneficiaries of the covenants, conditions,

68-22    restrictions, or limitations are not entitled to enjoin the

68-23    authority from using the property for a purpose authorized under

68-24    this chapter, but this section does not affect the right of a

68-25    person to seek damages to the person's property under Section 17,

68-26    Article I, Texas Constitution.

68-27          SECTION 7.15.  Section 361.180, Transportation Code, is

 69-1    amended to read as follows:

 69-2          Sec. 361.180.  TOLLS ON CONVERTED HIGHWAYS [PROHIBITION ON

 69-3    TOLLS ON EXISTING FREE HIGHWAYS].  If converted to a toll facility

 69-4    under Section 222.102 or 362.0041, the commission [The authority]

 69-5    may impose a toll for transit over an existing free public highway

 69-6    [only if such highway is transferred to the authority by the

 69-7    commission under Section 362.0041].

 69-8          SECTION 7.16.  Subsection (b), Section 361.184,

 69-9    Transportation Code, is amended to read as follows:

69-10          (b)  The board [authority] may transfer, or direct the

69-11    authority to transfer, into the project revolving fund money from

69-12    any permissible source, including:

69-13                (1)  money from a surplus fund established for a

69-14    turnpike project if the remainder of the surplus fund is not less

69-15    than any minimum amount required by the trust agreement to be

69-16    retained for that project;

69-17                (2)  money received under Subchapter I or from a

69-18    transfer of a turnpike project under Subchapter H;

69-19                (3)  advances from the state highway fund if the

69-20    advances are repaid as required by [department authorized under]

69-21    Section 52-b, Article III, Texas Constitution; and

69-22                (4)  contributions or assistance from the United

69-23    States, another state, a political subdivision of this state, the

69-24    United Mexican States, or a political subdivision of the United

69-25    Mexican States.

69-26          SECTION 7.17.  Section 361.189, Transportation Code, is

69-27    amended to read as follows:

 70-1          Sec. 361.189.  USE OF SURPLUS REVENUE.  [(a)]  The commission

 70-2    [board] by resolution may authorize the use of surplus revenue of a

 70-3    turnpike project to pay the costs of another turnpike project,

 70-4    other than a project financed under Subchapter I, or a toll-free

 70-5    project.  The commission [board] may in the resolution prescribe

 70-6    terms for the use of the revenue, including the pledge of the

 70-7    revenue, but may not take an action under this section that[:]

 70-8                [(1)  violates Subsection (b); or]

 70-9                [(2)]  violates, impairs, or is inconsistent with a

70-10    bond resolution, trust agreement, or indenture governing the use of

70-11    the surplus revenue.

70-12          [(b)  Except as provided by Subsection (c), the surplus

70-13    revenue of a turnpike project that was under construction or

70-14    operated by the authority on January 1, 1993, may be used only for:]

70-15                [(1)  the costs associated with the construction,

70-16    expansion, or maintenance of the project producing the revenue; and]

70-17                [(2)  transfers to the Texas Turnpike Authority

70-18    feasibility study fund.]

70-19          [(c)  The board may use revenue from a turnpike project

70-20    described by Subsection (b) for a purpose authorized by this

70-21    chapter other than a purpose described by that subsection if:]

70-22                [(1)  the authority obtains the permission of the

70-23    commissioners court of each county in which the project is located;

70-24    or]

70-25                [(2)  an agreement between the authority and a county

70-26    or local government corporation created by the county for the

70-27    lease, sale, or other conveyance of the project permits the revenue

 71-1    to be used for another purpose.]

 71-2          SECTION 7.18.  Section 361.232, Transportation Code, is

 71-3    amended by adding Subsection (e) to read as follows:

 71-4          (e)  This section does not apply to the conversion of any

 71-5    highway that is a part of the state highway system to a turnpike

 71-6    project.

 71-7          SECTION 7.19.  Section 361.237, Transportation Code, is

 71-8    amended to read as follows:

 71-9          Sec. 361.237.  OPERATION OF TURNPIKE PROJECT.  A turnpike

71-10    project is a public road subject to all laws applicable to the

71-11    regulation and control of traffic. [(a)  The authority shall police

71-12    and operate a turnpike project through a force of police,

71-13    toll-takers, and other employees of the authority.]

71-14          [(b)  The authority may arrange with the Department of Public

71-15    Safety for the services of officers of that agency.]

71-16          SECTION 7.20.  Section 361.238, Transportation Code, is

71-17    amended to read as follows:

71-18          Sec. 361.238.  PAYMENT OF BOND INDEBTEDNESS; CESSATION OR

71-19    CONTINUATION OF TOLLS[; TRANSFER OF PROJECT TO COMMISSION].

71-20    (a)  Except as provided by Subsection (b), a [A] turnpike project

71-21    [that is in good condition and repair to the satisfaction of the

71-22    commission] becomes a toll-free [part of the state] highway

71-23    [system] when:

71-24                (1)  the bonds issued under this chapter for the

71-25    project and the interest on the bonds are paid; or

71-26                (2)  firm banking and financial arrangements have been

71-27    made for the discharge and final payment or redemption of the bonds

 72-1    in accordance with Section 7A, Chapter 503, Acts of the 54th

 72-2    Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes) [a

 72-3    sufficient amount to pay the bonds and the interest on the bonds to

 72-4    maturity or to redeem the bonds has been set aside in trust for the

 72-5    benefit of the bondholders].

 72-6          (b)  If the conditions of Subsections (a)(1) and (2) are met,

 72-7    the commission may continue to charge a toll sufficient to pay the

 72-8    costs of maintaining the facility.  [The authority shall continue

 72-9    to operate as a toll facility a turnpike project that the

72-10    commission determines is not in a state of repair so as to justify

72-11    its acceptance as part of the state highway system.  The authority

72-12    shall continue the tolls then in effect or revise the tolls to

72-13    provide money sufficient to assure payment of the expenses of

72-14    maintenance and operation and the making of repairs and

72-15    replacements as necessary to meet the minimum requirements of the

72-16    commission within the shortest practicable time.]

72-17          [(c)  The commission shall maintain a turnpike project it

72-18    accepts free of tolls.  The authority shall deliver to the

72-19    commission at the time of acceptance any money remaining to the

72-20    credit of the project after retirement of the bonds issued for the

72-21    project.  The commission shall deposit the money in a fund to be

72-22    used to maintain the project facilities.  The commission shall

72-23    administer the fund in accordance with commission rules.]

72-24          [(d)  Not later than the first anniversary of the date the

72-25    commission accepts a turnpike project, the department shall

72-26    advertise for public sale each installation on the project other

72-27    than the road bed and highway sections and shall solicit sealed

 73-1    bids for those installations.  The department may reject any or all

 73-2    bids but shall dispose of the properties not later than the second

 73-3    anniversary of the date the commission accepts title to the

 73-4    project.]

 73-5          SECTION 7.21.  The heading of Subchapter H, Chapter 361,

 73-6    Transportation Code, is amended to read as follows:

 73-7              SUBCHAPTER H.  TRANSFER OF TURNPIKE PROJECT TO

 73-8           COUNTY, MUNICIPALITY, REGIONAL TOLLWAY AUTHORITY, OR

 73-9                       LOCAL GOVERNMENT CORPORATION

73-10          SECTION 7.22.  Sections 361.281, 361.282, and 361.285,

73-11    Transportation Code, are amended to read as follows:

73-12          Sec. 361.281.  APPLICABILITY OF SUBCHAPTER.  This subchapter

73-13    applies only to:

73-14                (1)  a county with a population of more than 1.5

73-15    million;

73-16                (2)  a local government corporation serving a county

73-17    with a population of more than 1.5 million; [or]

73-18                (3)  an adjacent county in a joint turnpike authority

73-19    with a county with a population of more than 1.5 million;

73-20                (4)  a municipality with a population of more than

73-21    120,000 that is adjacent to the United Mexican States; or

73-22                (5)  a regional tollway authority created under Chapter

73-23    366.

73-24          Sec. 361.282.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

73-25    PROJECT.  (a)  The authority may lease, sell, or convey in another

73-26    manner a turnpike project to a county, municipality, regional

73-27    tollway authority, or a local government corporation created under

 74-1    Chapter 431.

 74-2          (b)  The authority, the commission, and the governor must

 74-3    approve the transfer of the turnpike project as being in the best

 74-4    interests of the state and the entity receiving the turnpike

 74-5    project [county].

 74-6          Sec. 361.285.  APPROVAL OF AGREEMENT BY ATTORNEY GENERAL.

 74-7    (a)  An agreement for the lease, sale, or conveyance of a turnpike

 74-8    project under this subchapter shall be submitted to the attorney

 74-9    general for approval as part of the records of proceedings relating

74-10    to the issuance of bonds of the county, municipality, regional

74-11    tollway authority, or local government corporation.

74-12          (b)  If the attorney general determines that the agreement is

74-13    in accordance with law, the attorney general shall approve the

74-14    agreement and deliver to the commission a copy of the legal opinion

74-15    of the attorney general stating that approval.

74-16          SECTION 7.23.  Subsection (a), Section 361.331,

74-17    Transportation Code, is amended to read as follows:

74-18          (a)  The authority may designate two or more turnpike

74-19    projects that are wholly or partly located in a metropolitan

74-20    planning organization [planning region of a council of governments]

74-21    as a pooled turnpike project after:

74-22                (1)  conducting a public hearing; and

74-23                (2)  obtaining the approval of the commission[; and]

74-24                [(3)  obtaining a resolution adopted by the

74-25    commissioners court of the county that:]

74-26                      [(A)  approves the action; and]

74-27                      [(B)  specifies the date the pooled project

 75-1    becomes toll free].

 75-2          SECTION 7.24.  Section 362.0041, Transportation Code, is

 75-3    amended to read as follows:

 75-4          Sec. 362.0041.  CONVERSION [ACQUISITION] OF PROJECTS.

 75-5    (a)  If the commission finds that the conversion of a segment of

 75-6    the free state highway system to a toll facility is the most

 75-7    feasible and economic means to accomplish necessary expansion

 75-8    improvements, or extensions to the state highway system, that

 75-9    segment may[, on approval of the governor,] be converted

75-10    [transferred] by order of the commission to [the authority.  The

75-11    authority may receive such segment of highway, thereafter to be

75-12    owned, operated, and maintained as] a turnpike project under

75-13    Chapter 361.

75-14          (b)  [The authority shall reimburse the commission for the

75-15    cost of the transferred highway, unless the commission finds that

75-16    the transfer will result in substantial net benefits to the state,

75-17    the department, and the traveling public that exceed that cost.

75-18    The cost shall include the total dollar amount expended by the

75-19    department for the original construction of the highway, including

75-20    all costs associated with the preliminary engineering and design

75-21    engineering for plans, specifications, and estimates, the

75-22    acquisition of necessary right-of-way, and actual construction of

75-23    the highway and all necessary appurtenant facilities.]

75-24          [(c)  The commission shall, coincident with the transfer,

75-25    remove the segment of highway from the designated state highway

75-26    system and shall subsequently have no liability, responsibility, or

75-27    duty for the maintenance or operation of the highway.]

 76-1          [(d)]  Prior to converting [transferring] a segment of the

 76-2    state highway system under this section, the commission shall

 76-3    conduct a public hearing for the purpose of receiving comments from

 76-4    interested persons concerning the proposed transfer.  Notice of the

 76-5    hearing shall be published in the Texas Register, one or more

 76-6    newspapers of general circulation, and a newspaper, if any,

 76-7    published in the county or counties in which the involved highway

 76-8    is located.

 76-9          (c) [(e)]  The commission shall adopt rules implementing this

76-10    section, such rules to include criteria and guidelines for the

76-11    approval of a conversion [transfer] of a highway.

76-12          SECTION 7.25.  Subtitle G, Title 6, Transportation Code, is

76-13    amended by adding Chapter 366 to read as follows:

76-14                CHAPTER 366.  REGIONAL TOLLWAY AUTHORITIES

76-15                     SUBCHAPTER A.  GENERAL PROVISIONS

76-16          Sec. 366.001.  SHORT TITLE.  This chapter may be cited as the

76-17    Regional Tollway Authority Act.

76-18          Sec. 366.002.  PURPOSES; LIBERAL CONSTRUCTION.  (a)  The

76-19    purposes of this chapter are:

76-20                (1)  the expansion and improvement of transportation

76-21    facilities and systems in this state;

76-22                (2)  the creation of regional tollway authorities to

76-23    secure and acquire rights-of-way for urgently needed transportation

76-24    systems and to plan, design, construct, operate, expand, extend,

76-25    and modify those systems; and

76-26                (3)  the reduction of burdens and demands on the

76-27    limited money available to the commission and an increase in the

 77-1    effectiveness and efficiency of the commission.

 77-2          (b)  This chapter shall be liberally construed to effect its

 77-3    purposes.

 77-4          Sec. 366.003.  DEFINITIONS.  In this chapter:

 77-5                (1)  "Authority" means a regional tollway authority

 77-6    organized under this chapter.

 77-7                (2)  "Board" means the board of directors of an

 77-8    authority organized under this chapter.

 77-9                (3)  "Bond" means all bonds, certificates, notes, and

77-10    other obligations of an authority authorized by this chapter, any

77-11    other statute, or the Texas Constitution.

77-12                (4)  "Bond proceedings" means a bond resolution and any

77-13    bond indenture authorized by the bond resolution, any credit

77-14    agreement entered into in connection with the bonds or the payments

77-15    to be made under the agreement, and any other agreement between an

77-16    authority and another person providing security for the payment of

77-17    bonds.

77-18                (5)  "Bond resolution" means an order or resolution of

77-19    an authority's board authorizing the issuance of bonds.

77-20                (6)  "Bondholder" means the owner of bonds and includes

77-21    a trustee acting on behalf of an owner of bonds under the terms of

77-22    a bond indenture.

77-23                (7)  "Highway" means a road, highway, farm-to-market

77-24    road, or street under the supervision of the state or a political

77-25    subdivision of the state.

77-26                (8)  "Local governmental entity" means a political

77-27    subdivision of the state, including a municipality or a county, a

 78-1    political subdivision of a county, a group of adjoining counties, a

 78-2    district organized or operating under Section 52, Article III, or

 78-3    Section 59, Article XVI, Texas Constitution, or a nonprofit

 78-4    corporation, including a transportation corporation created under

 78-5    Chapter 431.

 78-6                (9)  "Revenue" means the tolls, rents, and other money

 78-7    received by an authority from the ownership or operation of a

 78-8    turnpike project.

 78-9                (10)  "System" means a turnpike project or any

78-10    combination of turnpike projects designated as a system by the

78-11    board under Section 366.034.

78-12                (11)  "Turnpike project" means a highway of any number

78-13    of lanes, with or without grade separations, owned or operated by

78-14    an authority under this chapter and any improvement, extension, or

78-15    expansion to that highway, including:

78-16                      (A)  an improvement to relieve traffic congestion

78-17    and promote safety;

78-18                      (B)  a bridge, tunnel, overpass, underpass,

78-19    interchange, service road, ramp, entrance plaza, approach, or

78-20    tollhouse;

78-21                      (C)  an administration, storage, or other

78-22    building the authority considers necessary to operate the turnpike

78-23    project;

78-24                      (D)  a service station, hotel, motel, restaurant,

78-25    parking area or structure, rest stop, park, and other improvement

78-26    or amenity the authority considers necessary, useful, or beneficial

78-27    for the operation of a turnpike project; and

 79-1                      (E)  property rights, easements, and interests

 79-2    the authority acquires to construct or operate the turnpike

 79-3    project.

 79-4          Sec. 366.004.  CONSTRUCTION COSTS DEFINED.  (a)  The cost of

 79-5    acquisition, construction, improvement, extension, or expansion of

 79-6    a turnpike project or system under this chapter includes the cost

 79-7    of:

 79-8                (1)  the actual acquisition, construction, improvement,

 79-9    extension, or expansion of the turnpike project or system;

79-10                (2)  the acquisition of real property, rights-of-way,

79-11    property rights, easements, and other interests in real property;

79-12                (3)  machinery and equipment;

79-13                (4)  interest payable before, during, and after

79-14    acquisition, construction, improvement, extension, or expansion as

79-15    provided in the bond proceedings;

79-16                (5)  traffic estimates, revenue estimates, engineering

79-17    and legal services, plans, specifications, surveys, appraisals,

79-18    construction cost estimates, and other expenses necessary or

79-19    incidental to determining the feasibility of the construction,

79-20    improvement, extension, or expansion;

79-21                (6)  necessary or incidental administrative, legal, and

79-22    other expenses;

79-23                (7)  compliance with laws, regulations, and

79-24    administrative rulings;

79-25                (8)  financing; and

79-26                (9)  expenses related to the initial operation of the

79-27    turnpike project or system.

 80-1          (b)  Costs attributable to a turnpike project or system and

 80-2    incurred before the issuance of bonds to finance the turnpike

 80-3    project or system may be reimbursed from the proceeds of sale of

 80-4    the bonds.

 80-5             (Sections 366.005-366.030 reserved for expansion

 80-6              SUBCHAPTER B.  CREATION AND POWERS OF REGIONAL

 80-7                            TOLLWAY AUTHORITIES

 80-8          Sec. 366.031.  CREATION AND EXPANSION OF A REGIONAL TOLLWAY

 80-9    AUTHORITY.  (a)  Two or more counties, acting through their

80-10    respective commissioners courts, may by order passed by each

80-11    commissioners court create a regional tollway authority under this

80-12    chapter if:

80-13                (1)  one of the counties has a population of not less

80-14    than 300,000;

80-15                (2)  the counties form a contiguous territory; and

80-16                (3)  unless one of the counties has a population of 1.5

80-17    million or more, the commission approves the creation.

80-18          (b)  The commission shall adopt rules to implement the

80-19    provisions of this section by March 1, 1998.

80-20          (c)  A commissioners court may by resolution petition an

80-21    established authority for inclusion in the authority if the county

80-22    is contiguous to a county that initially created the authority.

80-23          (d)  On approval of the board of an authority receiving a

80-24    petition under Subsection (c), the county becomes part of the

80-25    authority.

80-26          Sec. 366.032.  NATURE OF REGIONAL TOLLWAY AUTHORITY.  (a)  An

80-27    authority created under this chapter is a body politic and

 81-1    corporate and a political subdivision of this state.

 81-2          (b)  An authority is a governmental unit as that term is

 81-3    defined in Chapter 101, Civil Practice and Remedies Code.

 81-4          (c)  The exercise by an authority of the powers conferred by

 81-5    this chapter in the acquisition, design, financing, construction,

 81-6    operation, and maintenance of a turnpike project or system is:

 81-7                (1)  in all respects for the benefit of the people of

 81-8    the counties in which an authority operates and of the people of

 81-9    this state, for the increase of their commerce and prosperity, and

81-10    for the improvement of their health, living conditions, and public

81-11    safety; and

81-12                (2)  an essential governmental function of the state.

81-13          (d)  The operations of an authority are governmental, not

81-14    proprietary, functions.

81-15          (e)  An authority created before January 1, 2000, is subject

81-16    to review under Chapter 325, Government Code (Texas Sunset Act),

81-17    but is not abolished under that chapter.  The authority shall be

81-18    reviewed during the period:

81-19                (1)  in which state agencies abolished in 2003 are

81-20    reviewed; and

81-21                (2)  in which the department is reviewed.

81-22          (f)  An authority created on or after January 1, 2000, is

81-23    subject to review under Chapter 325, Government Code (Texas Sunset

81-24    Act), but is not abolished under that chapter.  The authority shall

81-25    be reviewed during the period in which the department is reviewed.

81-26          Sec. 366.033.  GENERAL POWERS.  (a)  An authority, acting

81-27    through its board, without state approval, supervision, or

 82-1    regulation, may:

 82-2                (1)  adopt rules for the regulation of its affairs and

 82-3    the conduct of its business;

 82-4                (2)  adopt an official seal;

 82-5                (3)  study, evaluate, design, acquire, construct,

 82-6    maintain, repair, and operate turnpike projects, individually or as

 82-7    one or more systems;

 82-8                (4)  acquire, hold, and dispose of property in the

 82-9    exercise of its powers and the performance of its duties under this

82-10    chapter;

82-11                (5)  enter into contracts or operating agreements with

82-12    similar authorities or agencies of the United States, a state of

82-13    the United States, the United Mexican States, or a state of the

82-14    United Mexican States;

82-15                (6)  enter into contracts or agreements necessary or

82-16    incidental to its duties and powers under this chapter;

82-17                (7)  cooperate and work directly with property owners

82-18    and governmental agencies and officials to support an activity

82-19    required to promote or develop a turnpike project or system;

82-20                (8)  employ and set the compensation of administrators,

82-21    consulting engineers, attorneys, accountants, construction and

82-22    financial experts, superintendents, managers, full-time and

82-23    part-time employees, agents, consultants, and such other persons as

82-24    the authority considers necessary or useful;

82-25                (9)  receive loans, gifts, grants, and other

82-26    contributions for the construction of a turnpike project or system

82-27    and receive contributions of money, property, labor, or other

 83-1    things of value from any source, including the United States, a

 83-2    state of the United States, the United Mexican States, a state of

 83-3    the United Mexican States, the commission, the department, any

 83-4    subdivision of the state, or any other local governmental or

 83-5    private entity, to be used for the purposes for which the grants or

 83-6    contributions are made, and enter into any agreement necessary for

 83-7    the grants or contributions;

 83-8                (10)  install, construct, maintain, repair, renew,

 83-9    relocate, and remove public utility facilities in, on, along, over,

83-10    or under a turnpike project;

83-11                (11)  organize a corporation under Chapter 431 for the

83-12    promotion and development of turnpike projects and systems;

83-13                (12)  adopt and enforce rules not inconsistent with

83-14    this chapter for the use of any turnpike project or system,

83-15    including traffic and other public safety rules;

83-16                (13)  enter into leases, operating agreements, service

83-17    agreements, licenses, franchises, and similar agreements with

83-18    public or private parties governing the parties' use of all or any

83-19    portion of a turnpike project and the rights and obligations of the

83-20    authority with respect to a turnpike project; and

83-21                (14)  do all things necessary or appropriate to carry

83-22    out the powers expressly granted by this chapter.

83-23          (b)  Rules adopted by the authority must comply with the

83-24    procedures in Subchapter B, Chapter 2001, Government Code, and are

83-25    subject to Section 2001.038, Government Code, except that the

83-26    action may be brought only in a district court of a county located

83-27    in the authority.

 84-1          (c)  Property comprising a part of a turnpike project or a

 84-2    system is not subject to condemnation or the power of eminent

 84-3    domain by any person, including a governmental entity.

 84-4          (d)  An authority may, if requested by the commission,

 84-5    perform any function not specified by this chapter to promote or

 84-6    develop turnpike projects and systems in this state.

 84-7          (e)  An authority may sue and be sued and plead and be

 84-8    impleaded in its own name.

 84-9          (f)  An authority may rent, lease, franchise, license, or

84-10    otherwise make portions of its properties available for use by

84-11    others in furtherance of its powers under this chapter by

84-12    increasing the feasibility or the revenue of a turnpike project or

84-13    system.

84-14          (g)  An authority and any local governmental entity may enter

84-15    into a contract under which the authority will operate a turnpike

84-16    project or system on behalf of the local governmental entity.  An

84-17    authority may enter into a contract with the department under which

84-18    the authority will operate a turnpike project or system on behalf

84-19    of the department.

84-20          (h)  The payments to be made to an authority under a contract

84-21    described by Subsection (g) shall constitute operating expenses of

84-22    the facility or system that is to be operated under the contract,

84-23    and the contract may extend for a number of years as the parties

84-24    agree.

84-25          (i)  An authority shall adopt a written drug and alcohol

84-26    policy restricting the use of controlled substances by employees of

84-27    the authority, prohibiting the consumption of alcoholic beverages

 85-1    by employees while on duty, and prohibiting employees from working

 85-2    for the authority while under the influence of controlled

 85-3    substances or alcohol.  An authority may adopt policies regarding

 85-4    the testing of employees suspected of being in violation of the

 85-5    authority's drug and alcohol policy.  The policy shall provide

 85-6    that, unless required by court order or permitted by the person who

 85-7    is the subject of the testing, the authority shall keep the results

 85-8    of the test confidential.

 85-9          (j)  An authority shall adopt written procedures governing

85-10    its procurement of goods and services that are consistent with

85-11    general laws applicable to the authority.

85-12          Sec. 366.034.  ESTABLISHMENT OF TURNPIKE SYSTEMS.  (a)  If an

85-13    authority determines that the traffic needs of the counties in

85-14    which it operates and the traffic needs of the surrounding region

85-15    could be most efficiently and economically met by jointly operating

85-16    two or more turnpike projects as one operational and financial

85-17    enterprise, it may create a system comprised of those turnpike

85-18    projects.  An authority may create more than one system and may

85-19    combine two or more systems into one system.  An authority may

85-20    finance, acquire, construct, and operate additional turnpike

85-21    projects as additions to and expansions of a system if the

85-22    authority determines that the turnpike project could most

85-23    efficiently and economically be acquired and constructed if it were

85-24    a part of the system and that the addition will benefit the system.

85-25          (b)  The revenue of a system shall be accounted for

85-26    separately and may not be commingled with the revenue of a turnpike

85-27    project that is not a part of the system or with the revenue of

 86-1    another system.

 86-2          Sec. 366.035.  CONVERSION OF STATE HIGHWAY SYSTEM PROJECTS.

 86-3    (a)  If the commission determines that the most feasible and

 86-4    economic means to accomplish necessary expansion, improvements, or

 86-5    extensions to the state highway system is the conversion to a

 86-6    turnpike project of a segment of the free state highway system, any

 86-7    segment located in a county of an authority or a county in which an

 86-8    authority operates a turnpike project or in any county adjacent to

 86-9    those counties may, on approval of the governor and the affected

86-10    authority, be transferred by order of the commission to that

86-11    authority.  An authority that receives the segment of highway may

86-12    own, operate, and maintain the segment as a turnpike project or

86-13    system or a part of a turnpike project or system under this

86-14    chapter.

86-15          (b)  An authority shall reimburse the commission for the cost

86-16    of a transferred highway, unless the commission determines that the

86-17    transfer will result in substantial net benefits to the state, the

86-18    department, and the traveling public that exceed that cost.  The

86-19    cost includes the total amount expended by the department for the

86-20    original construction of the highway, including all costs

86-21    associated with the preliminary engineering and design engineering

86-22    for plans, specifications, and estimates, the acquisition of

86-23    necessary rights-of-way, and actual construction of the highway and

86-24    all necessary appurtenant facilities.  Costs anticipated to be

86-25    expended to expand, improve, or extend the highway shall be

86-26    deducted from the costs to be reimbursed to the commission.

86-27          (c)  The commission shall, at the time of a transfer, remove

 87-1    the segment of highway from the state highway system.  After a

 87-2    transfer the commission has no liability, responsibility, or duty

 87-3    for the maintenance or operation of the highway.

 87-4          (d)  Before transferring a segment of the state highway

 87-5    system under this section, the commission shall conduct a public

 87-6    hearing to receive comments from interested persons concerning the

 87-7    proposed transfer.  Notice of the hearing must be published in the

 87-8    Texas Register, one or more newspapers of general circulation in

 87-9    the counties in which the segment is located, and a newspaper, if

87-10    any, published in the counties of the applicable authority.

87-11          (e)  The commission shall adopt rules implementing this

87-12    section.  The rules shall include criteria and guidelines for the

87-13    approval of a transfer of a highway.

87-14          (f)  An authority shall adopt rules providing criteria and

87-15    guidelines for approving the acceptance of a highway under this

87-16    section.

87-17             (Sections 366.036-366.070 reserved for expansion

87-18         SUBCHAPTER C.  FEASIBILITY OF REGIONAL TURNPIKE PROJECTS

87-19          Sec. 366.071.  EXPENDITURES FOR FEASIBILITY STUDIES.  (a)  An

87-20    authority may pay the expenses of studying the cost and feasibility

87-21    and any other expenses relating to the preparation and issuance of

87-22    bonds for a proposed turnpike project or system by:

87-23                (1)  using legally available revenue derived from an

87-24    existing turnpike project or system;

87-25                (2)  borrowing money and issuing bonds or entering into

87-26    a loan agreement payable out of legally available revenue

87-27    anticipated to be derived from the operation of an existing

 88-1    turnpike project or system; or

 88-2                (3)  pledging to the payment of the bonds or loan

 88-3    agreements legally available revenue anticipated to be derived from

 88-4    the operation of an existing turnpike project or system or revenue

 88-5    legally available to the authority from another source.

 88-6          (b)  Money spent under this section for a proposed turnpike

 88-7    project or system must be reimbursed to the turnpike project or

 88-8    system from which the money was spent from the proceeds of bonds

 88-9    issued for the acquisition and construction of the proposed

88-10    turnpike project or system.

88-11          (c)  The use of any money of a turnpike project or system to

88-12    study the feasibility of another turnpike project or system or used

88-13    to repay any money used for that purpose does not constitute an

88-14    operating expense of the turnpike project or system producing the

88-15    revenue and may only be paid from the surplus money of the turnpike

88-16    project or system.

88-17          Sec. 366.072.  FEASIBILITY STUDY FUND.  (a)  An authority may

88-18    maintain a feasibility study fund.  The fund is a revolving fund

88-19    held in trust by a banking institution chosen by the authority and

88-20    shall be kept separate from the money for any turnpike project or

88-21    system.

88-22          (b)  An authority may transfer an amount from a surplus fund

88-23    established for a turnpike project or system to the authority's

88-24    feasibility study fund if the remainder of the surplus fund is not

88-25    less than any minimum amount required by the bond proceedings to be

88-26    retained for that turnpike project or system.

88-27          (c)  Money in the feasibility study fund may be used only to

 89-1    pay the expenses of studying the cost and feasibility and any other

 89-2    expenses relating to:

 89-3                (1)  the preparation and issuance of bonds for the

 89-4    acquisition and construction of a proposed turnpike project or

 89-5    system;

 89-6                (2)  the financing of the improvement, extension, or

 89-7    expansion of an existing turnpike project or system; and

 89-8                (3)  private participation, as authorized by law, in

 89-9    the financing of a proposed turnpike project or system, the

89-10    refinancing of an existing turnpike project or system, or the

89-11    improvement, extension, or expansion of a turnpike project or

89-12    system.

89-13          (d)  Money spent under Subsection (c) for a proposed turnpike

89-14    project or system must be reimbursed from the proceeds of turnpike

89-15    revenue bonds issued for, or other proceeds that may be used for,

89-16    the acquisition, construction, improvement, extension, expansion,

89-17    or operation of the turnpike project or system.

89-18          (e)  For a purpose described by Subsection (c), an authority

89-19    may borrow money and issue promissory notes or other

89-20    interest-bearing evidences of indebtedness payable out of its

89-21    feasibility study fund, pledging money in the fund or to be placed

89-22    in the fund.

89-23          Sec. 366.073.  FEASIBILITY STUDY BY MUNICIPALITY, COUNTY,

89-24    OTHER LOCAL GOVERNMENTAL ENTITY, OR PRIVATE GROUP.  (a)  One or

89-25    more municipalities, counties, or local governmental entities, a

89-26    combination of municipalities, counties, and local governmental

89-27    entities, or a private group or combination of individuals in this

 90-1    state may pay all or part of the expenses of studying the cost and

 90-2    feasibility and any other expenses relating to:

 90-3                (1)  the preparation and issuance of bonds for the

 90-4    acquisition and construction of a proposed turnpike project or

 90-5    system by an authority;

 90-6                (2)  the improvement, extension, or expansion of an

 90-7    authority's existing turnpike project or system; or

 90-8                (3)  the use of private participation under applicable

 90-9    law in connection with the acquisition, construction, improvement,

90-10    expansion, extension, maintenance, repair, or operation of a

90-11    turnpike project or system by an authority.

90-12          (b)  Money spent under Subsection (a) for an authority's

90-13    proposed turnpike project or system is reimbursable without

90-14    interest and with the consent of the authority to the person paying

90-15    the expenses described in Subsection (a) out of the proceeds from

90-16    turnpike revenue bonds issued for or other proceeds that may be

90-17    used for the acquisition, construction, improvement, extension,

90-18    expansion, or operation of the turnpike project or system.

90-19             (Sections 366.074-366.110 reserved for expansion

90-20                     SUBCHAPTER D.  TURNPIKE FINANCING

90-21          Sec. 366.111.  TURNPIKE REVENUE BONDS.  (a)  An authority, by

90-22    adoption of a bond resolution, may authorize the issuance of bonds

90-23    to pay all or part of the cost of a turnpike project or system, to

90-24    refund any bonds previously issued for the turnpike project or

90-25    system, or to pay for all or part of the cost of a turnpike project

90-26    or system that will become a part of another system.

90-27          (b)  As determined in the bond resolution, the bonds of each

 91-1    issue shall:

 91-2                (1)  be dated;

 91-3                (2)  bear interest at the rate or rates and beginning

 91-4    on the dates, as authorized by law, or bear no interest;

 91-5                (3)  mature at the time or times, not exceeding 40

 91-6    years from their date or dates; and

 91-7                (4)  be made redeemable before maturity at the price or

 91-8    prices and under the terms provided by the bond resolution.

 91-9          (c)  An authority may sell the bonds at public or private

91-10    sale in the manner and for the price it determines to be in the

91-11    best interest of the authority.

91-12          (d)  The proceeds of each bond issue shall be disbursed in

91-13    the manner and under the restrictions, if any, the authority

91-14    provides in the bond resolution.

91-15          (e)  Additional bonds may be issued in the same manner to pay

91-16    the costs of a turnpike project or system.  Unless otherwise

91-17    provided in the bond resolution, the additional bonds shall be on a

91-18    parity, without preference or priority, with bonds previously

91-19    issued and payable from the revenue of the turnpike project or

91-20    system.  In addition, an authority may issue bonds for a turnpike

91-21    project or system secured by a lien on the revenue of the turnpike

91-22    project or system subordinate to the lien on the revenue securing

91-23    other bonds issued for the turnpike project or system.

91-24          (f)  If the proceeds of a bond issue exceed the cost of the

91-25    turnpike project or system for which the bonds were issued, the

91-26    surplus shall be segregated from the other money of the authority

91-27    and used only for the purposes specified in the bond resolution.

 92-1          (g)  Bonds issued and delivered under this chapter and

 92-2    interest coupons on the bonds are a security under Chapter 8,

 92-3    Business & Commerce Code.

 92-4          (h)  Bonds issued under this chapter and income from the

 92-5    bonds, including any profit made on the sale or transfer of the

 92-6    bonds, are exempt from taxation in this state.

 92-7          Sec. 366.112.  INTERIM BONDS.  (a)  An authority may, before

 92-8    issuing definitive bonds, issue interim bonds, with or without

 92-9    coupons, exchangeable for definitive bonds.

92-10          (b)  The interim bonds may be authorized and issued in

92-11    accordance with this chapter, without regard to the requirements,

92-12    restrictions, or procedural provisions contained in any other law.

92-13          (c)  A bond resolution authorizing interim bonds may provide

92-14    that the interim bonds recite that the bonds are issued under this

92-15    chapter.  The recital is conclusive evidence of the validity and

92-16    the regularity of the bonds' issuance.

92-17          Sec. 366.113.  PAYMENT OF BONDS; STATE AND COUNTY CREDIT NOT

92-18    PLEDGED.  (a)  The principal of, interest on, and any redemption

92-19    premium on bonds issued by an authority are payable solely from:

92-20                (1)  the revenue of the turnpike project or system for

92-21    which the bonds are issued, including tolls pledged to pay the

92-22    bonds;

92-23                (2)  payments made under an agreement with the

92-24    commission or a local governmental entity as provided by Subchapter

92-25    G;

92-26                (3)  money derived from any other source available to

92-27    the authority, other than money derived from a turnpike project

 93-1    that is not part of the same system or money derived from a

 93-2    different system, except to the extent that the surplus revenue of

 93-3    a turnpike project or system has been pledged for that purpose; and

 93-4                (4)  amounts received under a credit agreement relating

 93-5    to the turnpike project or system for which the bonds are issued.

 93-6          (b)  Bonds issued under this chapter do not constitute a debt

 93-7    of the state or any of the counties of an authority or a pledge of

 93-8    the faith and credit of the state or any of the counties.  Each

 93-9    bond must contain on its face a statement to the effect that the

93-10    state, the authority, and the counties of the authority are not

93-11    obligated to pay the bond or the interest on the bond from a source

93-12    other than the amount pledged to pay the bond and the interest on

93-13    the bond, and neither the faith and credit and taxing power of the

93-14    state or the counties of the authority are pledged to the payment

93-15    of the principal of or interest on the bond.

93-16          (c)  An authority may not incur financial obligations that

93-17    cannot be paid from revenue derived from owning or operating the

93-18    authority's turnpike projects and systems or from other revenue

93-19    provided by law.

93-20          Sec. 366.114.  EFFECT OF LIEN.  (a)  A lien on or a pledge of

93-21    revenue from a turnpike project or system under this chapter or on

93-22    a reserve, replacement, or other fund established in connection

93-23    with a bond issued under this chapter:

93-24                (1)  is enforceable at the time of payment for and

93-25    delivery of the bond;

93-26                (2)  applies to an item on hand or subsequently

93-27    received;

 94-1                (3)  applies without physical delivery of an item or

 94-2    other act; and

 94-3                (4)  is enforceable against any person having any

 94-4    claim, in tort, contract, or other remedy, against the applicable

 94-5    authority without regard to whether the person has notice of the

 94-6    lien or pledge.

 94-7          (b)  A bond resolution is not required to be recorded except

 94-8    in the regular records of the authority.

 94-9          Sec. 366.115.  BOND INDENTURE.  (a)  Bonds issued under this

94-10    chapter may be secured by a bond indenture between the authority

94-11    and a corporate trustee that is a trust company or a bank that has

94-12    the powers of a trust company.

94-13          (b)  A bond indenture may pledge or assign the tolls and

94-14    other revenue to be received but may not convey or mortgage any

94-15    part of a turnpike project or system.

94-16          (c)  A bond indenture may:

94-17                (1)  set forth the rights and remedies of the

94-18    bondholders and the trustee;

94-19                (2)  restrict the individual right of action by

94-20    bondholders as is customary in trust agreements or indentures of

94-21    trust securing corporate bonds and debentures; and

94-22                (3)  contain provisions the authority determines

94-23    reasonable and proper for the security of the bondholders,

94-24    including covenants:

94-25                      (A)  establishing the authority's duties relating

94-26    to:

94-27                            (i)  the acquisition of property;

 95-1                            (ii)  the construction, maintenance,

 95-2    operation, and repair of and insurance for a turnpike project or

 95-3    system; and

 95-4                            (iii)  custody, safeguarding, and

 95-5    application of money;

 95-6                      (B)  prescribing events that constitute default;

 95-7                      (C)  prescribing terms on which any or all of the

 95-8    bonds become or may be declared due before maturity; and

 95-9                      (D)  relating to the rights, powers, liabilities,

95-10    or duties that arise on the breach of an authority's duty.

95-11          (d)  The expenses incurred in carrying out a trust agreement

95-12    may be treated as part of the cost of operating the turnpike

95-13    project.

95-14          (e)  In addition to all other rights by mandamus or other

95-15    court proceeding, an owner or trustee of a bond issued under this

95-16    chapter may enforce the owner's rights against an issuing

95-17    authority, the authority's employees, the authority's board, or an

95-18    agent or employee of the authority's board and is entitled to:

95-19                (1)  require the authority and the board to impose and

95-20    collect tolls, charges, and other revenue sufficient to carry out

95-21    any agreement contained in the bond proceedings; and

95-22                (2)  apply for and obtain the appointment of a receiver

95-23    for the turnpike project or system.

95-24          Sec. 366.116.  APPROVAL OF BONDS BY ATTORNEY GENERAL.

95-25    (a)  An authority shall submit to the attorney general for

95-26    examination a transcript of proceedings relating to bonds

95-27    authorized under this chapter.  The transcript shall include the

 96-1    bond proceedings and any contract securing or providing revenue for

 96-2    the payment of the bonds.

 96-3          (b)  If the attorney general determines that the bonds, the

 96-4    bond proceedings, and any supporting contract are authorized by

 96-5    law, the attorney general shall approve the bonds and deliver to

 96-6    the comptroller:

 96-7                (1)  a copy of the legal opinion of the attorney

 96-8    general stating the approval; and

 96-9                (2)  the record of proceedings relating to the

96-10    authorization of the bonds.

96-11          (c)  On receipt of the legal opinion of the attorney general

96-12    and the record of proceedings relating to the authorization of the

96-13    bonds, the comptroller shall register the record of proceedings.

96-14          (d)  After approval by the attorney general, the bonds, the

96-15    bond proceedings, and any supporting contract are valid,

96-16    enforceable, and incontestable in any court or other forum for any

96-17    reason and are binding obligations according to their terms for all

96-18    purposes.

96-19          Sec. 366.117.  FURNISHING OF INDEMNIFYING BONDS OR PLEDGES OF

96-20    SECURITIES.  (a)  A bank or trust company incorporated under the

96-21    laws of this state that acts as depository of the proceeds of bonds

96-22    or of revenue may furnish indemnifying bonds or pledge securities

96-23    that an authority requires.

96-24          (b)  Bonds of an authority may secure the deposit of public

96-25    money of the state or a political subdivision of the state to the

96-26    extent of the lesser of the face value of the bonds or their market

96-27    value.

 97-1          Sec. 366.118.  APPLICABILITY OF OTHER LAW; CONFLICTS.  All

 97-2    laws affecting the issuance of bonds by local governmental

 97-3    entities, including Chapter 656, Acts of the 68th Legislature,

 97-4    Regular Session, 1983 (Article 717q, Vernon's Texas Civil

 97-5    Statutes), Chapter 3, Acts of the 61st Legislature, Regular

 97-6    Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), the

 97-7    Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil

 97-8    Statutes), and Chapter 53, Acts of the 70th Legislature, 2nd Called

 97-9    Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes),

97-10    apply to bonds issued under this chapter.  To the extent of a

97-11    conflict between those laws and this chapter, the provisions of

97-12    this chapter prevail.

97-13             (Sections 366.119-366.160 reserved for expansion

97-14          SUBCHAPTER E.  ACQUISITION, CONSTRUCTION, AND OPERATION

97-15                           OF TURNPIKE PROJECTS

97-16          Sec. 366.161.  TURNPIKE PROJECTS EXTENDING INTO OTHER

97-17    COUNTIES.  An authority may acquire, construct, operate, maintain,

97-18    expand, or extend a turnpike project in:

97-19                (1)  a county that is a part of the authority; or

97-20                (2)  a county in which the authority operates or is

97-21    constructing a turnpike project if the turnpike project in the

97-22    affected county is a continuation of the authority's turnpike

97-23    project or system extending from an adjacent county.

97-24          Sec. 366.162.  POWERS AND PROCEDURES OF AUTHORITY IN

97-25    ACQUIRING PROPERTY.  (a)  An authority may construct or improve a

97-26    turnpike project on real property, including a right-of-way

97-27    acquired by the authority or provided to the authority for that

 98-1    purpose by the commission, a political subdivision of this state,

 98-2    or any other local governmental entity.

 98-3          (b)  Except as provided by this chapter, an authority has the

 98-4    same powers and may use the same procedures as the commission in

 98-5    acquiring property.

 98-6          Sec. 366.163.  ACQUISITION OF PROPERTY.  (a)  An authority

 98-7    may acquire in the name of the authority public or private real and

 98-8    other property it determines necessary or convenient for the

 98-9    construction, operation, maintenance, expansion, or extension of a

98-10    turnpike project or for otherwise carrying out this chapter.

98-11          (b)  The property an authority may acquire under this

98-12    subchapter includes all or any portion of, and rights in and to:

98-13                (1)  public or private land, streets, alleys,

98-14    rights-of-way, parks, playgrounds, and reservations;

98-15                (2)  franchises;

98-16                (3)  easements;

98-17                (4)  licenses; and

98-18                (5)  other interests in real and other property.

98-19          (c)  An authority may acquire real property by any method,

98-20    including purchase and condemnation.  An authority may purchase

98-21    public or private real property on the terms and at the price the

98-22    authority and the property owner consider reasonable.

98-23          (d)  Covenants, conditions, restrictions, or limitations

98-24    affecting property acquired in any manner by the authority are not

98-25    binding against the authority and do not impair the authority's

98-26    ability to use the property for a purpose authorized by this

98-27    chapter.  The beneficiaries of the covenants, conditions,

 99-1    restrictions, or limitations are not entitled to enjoin the

 99-2    authority from using the property for a purpose authorized under

 99-3    this chapter, but this section does not affect the right of a

 99-4    person to seek compensation for damages to the person's property

 99-5    under Section 17, Article I, Texas Constitution.

 99-6          (e)  Subsection (d) does not affect the obligation of the

 99-7    authority under other state law to compensate the state for

 99-8    acquiring or using property owned by or on behalf of the state.

 99-9          Sec. 366.164.  RIGHT OF ENTRY.  (a)  To acquire property

99-10    necessary or useful in connection with a turnpike project, an

99-11    authority may enter any real property, water, or premises to make a

99-12    survey, geotechnical evaluation, sounding, or examination.

99-13          (b)  An entry under Subsection (a) is not:

99-14                (1)  a trespass; or

99-15                (2)  an entry under a pending condemnation proceeding.

99-16          (c)  The authority shall make reimbursements for any actual

99-17    damages to real property, water, or premises that result from an

99-18    activity described by Subsection (a).

99-19          Sec. 366.165.  CONDEMNATION OF REAL PROPERTY.  (a)  Subject

99-20    to Subsection (c), an authority may acquire public or private real

99-21    property in the name of the authority by the exercise of the power

99-22    of condemnation under the laws applicable to the exercise of that

99-23    power on property for public use if:

99-24                (1)  the authority and the property owner cannot agree

99-25    on a reasonable price for the property; or

99-26                (2)  the property owner is legally incapacitated,

99-27    absent, unknown, or unable to convey title.

 100-1         (b)  An authority may condemn real property that the

 100-2   authority determines is:

 100-3               (1)  necessary or appropriate to construct or to

 100-4   efficiently operate a turnpike project;

 100-5               (2)  necessary to restore public or private property

 100-6   damaged or destroyed, including property necessary or convenient to

 100-7   mitigate an environmental effect that directly results from the

 100-8   construction, operation, or maintenance of a turnpike project;

 100-9               (3)  necessary for access, approach, and interchange

100-10   roads;

100-11               (4)  necessary to provide proper drainage and ground

100-12   slope for a turnpike project; or

100-13               (5)  necessary otherwise to implement this chapter.

100-14         (c)  An authority may construct a supplemental facility only

100-15   on real property the authority purchases.

100-16         (d)  An authority's acquisition of any real or other property

100-17   of the commission under this section or any other section of this

100-18   chapter, or an authority's relocation, rerouting, disruption, or

100-19   alteration of any facility of the commission is considered a

100-20   conversion of a state highway under Section 366.035 and is subject

100-21   to all requirements and approvals of a conversion under that

100-22   section.

100-23         Sec. 366.166.  DECLARATION OF TAKING.  (a)  An authority may

100-24   file a declaration of taking with the clerk of the court:

100-25               (1)  in which the authority files a condemnation

100-26   petition under Chapter 21, Property Code; or

100-27               (2)  to which the case is assigned.

 101-1         (b)  An authority may not file the declaration of taking:

 101-2               (1)  before the 91st day after the date the

 101-3   condemnation petition has been filed; or

 101-4               (2)  after the special commissioners have made an award

 101-5   in the condemnation proceeding.

 101-6         (c)  The declaration of taking must include:

 101-7               (1)  a specific reference to the legislative authority

 101-8   for the condemnation;

 101-9               (2)  a description and plot plan of the real property

101-10   to be condemned, including the following information if applicable:

101-11                     (A)  the municipality in which the property is

101-12   located;

101-13                     (B)  the street address of the property; and

101-14                     (C)  the lot and block number of the property;

101-15               (3)  a statement of the property interest to be

101-16   condemned;

101-17               (4)  the name and address of each property owner that

101-18   the authority can obtain after reasonable investigation and a

101-19   description of the owner's interest in the property; and

101-20               (5)  a statement that immediate possession of all or

101-21   part of the property to be condemned is necessary for the timely

101-22   construction of a turnpike project.

101-23         (d)  A deposit to the registry of the court of an amount

101-24   equal to the appraised fair market value, as determined by the

101-25   authority, of the property to be condemned and any damages to the

101-26   remainder must accompany the declaration of taking.

101-27         (e)  Instead of the deposit under Subsection (d), at its

 102-1   option, the authority may, concurrently with the declaration of a

 102-2   taking, tender in favor of the owner of the subject property a bond

 102-3   or other security in an amount sufficient to secure the owner for

 102-4   the value of the property taken and damages to remaining property,

 102-5   if the authority obtains the court's approval.

 102-6         (f)  The date on which the declaration is filed is the date

 102-7   of taking for the purpose of assessing the value of the property

 102-8   taken and damages to any remaining property to which an owner is

 102-9   entitled.

102-10         (g)  An owner may draw upon the deposit held by the court

102-11   under Subsection (d) on the same terms and conditions as are

102-12   applicable under state law to a property owner's withdrawal of a

102-13   commissioners' award deposited under Section 21.021(a)(1), Property

102-14   Code.

102-15         (h)  A property owner that is a defendant in an eminent

102-16   domain action filed by an authority under this chapter has 20 days

102-17   after the date of service of process of both a condemnation

102-18   petition and a notice of declaration of taking to give notice to

102-19   the court in which the action is pending of the defendant's desire

102-20   to have the condemnation petition placed on the court's docket in

102-21   the same manner as other cases pending in the court.  On receipt of

102-22   timely notice from the defendant, the court in which the eminent

102-23   domain action is pending shall place the case on its docket in the

102-24   same manner as other cases pending in the court.

102-25         Sec. 366.167.  POSSESSION OF PROPERTY.  (a)  Immediately on

102-26   the filing of a declaration of taking, an authority shall serve a

102-27   copy of the declaration on each person possessing an interest in

 103-1   the condemned property by a method prescribed by Section 21.016(d),

 103-2   Property Code.  The authority shall file evidence of the service

 103-3   with the clerk of the court.  On filing of that evidence, the

 103-4   authority may take possession of the property on the same terms as

 103-5   if a commissioners hearing had been conducted, pending the

 103-6   litigation.

 103-7         (b)  If the condemned property is a homestead or a portion of

 103-8   a homestead as defined by Section 41.002, Property Code, an

 103-9   authority may not take possession before the 31st day after the

103-10   date of service under Subsection (a).

103-11         (c)  A property owner or tenant who refuses to vacate the

103-12   property or yield possession is subject to forcible entry and

103-13   detainer under Chapter 24, Property Code.

103-14         Sec. 366.168.  SEVERANCE OF REAL PROPERTY.  (a)  If an

103-15   authority's turnpike project severs a property owner's real

103-16   property, the authority shall pay:

103-17               (1)  the value of the property acquired; and

103-18               (2)  the damages, if any, to the remainder of the

103-19   owner's property caused by the severance, including damages caused

103-20   by the inaccessibility of one tract from the other.

103-21         (b)  At its option, an authority may negotiate for and

103-22   purchase the severed real property or any part of the severed real

103-23   property if the authority and the property owner agree on terms for

103-24   the purchase.  An authority may sell and dispose of severed real

103-25   property that it determines is not necessary or useful to the

103-26   authority.  Severed property must be appraised before being offered

103-27   for sale by an authority.

 104-1         Sec. 366.169.  ACQUISITION OF RIGHTS IN PUBLIC REAL PROPERTY.

 104-2   (a)  An authority may use real property, including submerged land,

 104-3   streets, alleys, and easements, owned by the state or a local

 104-4   governmental entity that the authority considers necessary for the

 104-5   construction or operation of a turnpike project.

 104-6         (b)  The state or a local governmental entity having charge

 104-7   of public real property may consent to the use of the property for

 104-8   a turnpike project.

 104-9         (c)  Except as provided by Section 366.035, the state or a

104-10   local governmental entity may convey, grant, or lease to an

104-11   authority real property, including highways and other real property

104-12   already devoted to public use and rights or easements in real

104-13   property, that may be necessary or convenient to accomplish the

104-14   authority's purposes, including the construction or operation of a

104-15   turnpike project.  A conveyance, grant, or lease under this section

104-16   may be made without advertising, court order, or other action other

104-17   than the normal action of the state or local governmental entity

104-18   necessary for a conveyance, grant, or lease.

104-19         (d)  This section does not deprive the School Land Board of

104-20   the power to execute leases for the development of oil, gas, and

104-21   other minerals on state-owned real property adjoining a turnpike

104-22   project or in tidewater limits.  The leases may provide for

104-23   directional drilling from the adjoining property or tidewater area.

104-24         (e)  This section does not affect the obligation of the

104-25   authority under other state law to compensate the state for

104-26   acquiring or using property owned by or on behalf of the state.  An

104-27   authority's use of property owned by or on behalf of the state is

 105-1   subject to any covenants, conditions, restrictions, or limitations

 105-2   affecting that property.

 105-3         Sec. 366.170.  COMPENSATION FOR AND RESTORATION OF PUBLIC

 105-4   PROPERTY.  (a)  Except as provided by Section 366.035 or Section

 105-5   366.165(c), an authority may not pay compensation for public real

 105-6   property, parkways, streets, highways, alleys, or reservations it

 105-7   takes, except for:

 105-8               (1)  parks and playgrounds;

 105-9               (2)  property owned by or on behalf of the state that

105-10   under state law requires compensation to the state for the use or

105-11   acquisition of the property; or

105-12               (3)  as provided by this chapter.

105-13         (b)  Public property damaged in the exercise of powers

105-14   granted by this chapter shall be restored or repaired and placed in

105-15   its original condition as nearly as practicable.

105-16         (c)  An authority has full easements and rights-of-way

105-17   through, across, under, and over any property owned by the state or

105-18   any local governmental entity that are necessary or convenient to

105-19   construct, acquire, or efficiently operate a turnpike project or

105-20   system under this chapter.  This subsection does not affect the

105-21   obligation of the authority under other state law to compensate the

105-22   state for the use or acquisition of an easement or right-of-way on

105-23   property owned by or on behalf of the state.  An authority's use of

105-24   property owned by or on behalf of the state is subject to any

105-25   covenants, conditions, restrictions, or limitations affecting that

105-26   property.

105-27         Sec. 366.171.  PUBLIC UTILITY FACILITIES.  (a)  An authority

 106-1   may adopt rules for the installation, construction, operation,

 106-2   maintenance, repair, renewal, relocation, and removal of a public

 106-3   utility facility in, on, along, over, or under a turnpike project.

 106-4         (b)  If an authority determines it is necessary that a public

 106-5   utility facility located in, on, along, over, or under a turnpike

 106-6   project be relocated in the turnpike project, removed from the

 106-7   turnpike project, or carried along or across the turnpike project

 106-8   by grade separation, the owner or operator of the utility facility

 106-9   shall relocate or remove the facility in accordance with the

106-10   requirements of the authority and in a manner that does not

106-11   unreasonably impede the design, financing, construction, operation,

106-12   or maintenance of the turnpike project.  The authority, as a part

106-13   of the cost of the turnpike project or the cost of operating the

106-14   turnpike project, shall pay the cost of the relocation, removal, or

106-15   grade separation, including the cost of:

106-16               (1)  installation of the facility in a new location;

106-17               (2)  damages incurred by the utility to its facilities

106-18   and services;

106-19               (3)  interests in real property and other rights

106-20   acquired to accomplish the relocation or removal; and

106-21               (4)  maintenance of grade separation structures.

106-22         (c)  The authority may reduce the total costs to be paid by

106-23   the authority under Subsection (b) by 10 percent for each 30-day

106-24   period or portion of a 30-day period by which the relocation

106-25   exceeds the limit agreed to by the owner or operator of the public

106-26   utility facility and the authority.  The owner or operator of the

106-27   facility and the authority may not unreasonably withhold approval

 107-1   for an agreement.  If an owner or operator of a public utility

 107-2   facility does not timely remove or relocate as required under

 107-3   Subsection (b), the authority may do so at the expense of the

 107-4   public utility.  If the authority determines that a delay in

 107-5   relocation is the result of circumstances beyond the control of the

 107-6   utility, full costs shall be paid by the authority.

 107-7         (d)  Chapter 228, Acts of the 51st Legislature, Regular

 107-8   Session, 1949 (Article 1436a, Vernon's Texas Civil Statutes),

 107-9   applies to the erection, construction, maintenance, and operation

107-10   of lines and poles owned by a corporation described by Section 1 of

107-11   that Act over, under, across, on, and along a turnpike project or

107-12   system constructed by an authority.  An authority has the powers

107-13   and duties delegated to the commissioners court by that Act, and an

107-14   authority has exclusive jurisdiction and control of utilities

107-15   located in its rights-of-way.

107-16         (e)  Chapter 470, Acts of the 52nd Legislature, Regular

107-17   Session, 1951 (Article 1436b, Vernon's Texas Civil Statutes),

107-18   applies to the laying and maintenance of facilities used for

107-19   conducting gas by a person, firm, or corporation or municipality

107-20   described in Section 1 of that Act through, under, along, across,

107-21   and over a turnpike project or system constructed by an authority

107-22   except as otherwise provided by this section.  An authority has the

107-23   power and duties delegated to the commissioners court by that Act

107-24   and an authority has exclusive jurisdiction and control of

107-25   utilities located in its right-of-way.

107-26         (f)  The laws of this state applicable to the use of public

107-27   roads, streets, and waters by a telephone and telegraph corporation

 108-1   apply to the erection, construction, maintenance, location, and

 108-2   operation of a line, pole, or other fixture by a telephone and

 108-3   telegraph corporation over, under, across, on, and along a turnpike

 108-4   project or system constructed by an authority under this chapter.

 108-5         (g)  In this section "public utility facility" means a track,

 108-6   pipe, main, conduit, cable, wire, tower, pole, or other item of

 108-7   plant or equipment or an appliance of a public utility or other

 108-8   person.

 108-9         Sec. 366.172.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

108-10   PROJECT.  (a)  An authority may lease, sell, or convey in another

108-11   manner a turnpike project to the department, a county, or a local

108-12   government corporation created under Chapter 431.

108-13         (b)  An agreement to lease, sell, or convey a turnpike

108-14   project under this section must provide for the discharge and final

108-15   payment or redemption of the authority's outstanding bonded

108-16   indebtedness for the turnpike project and must not be prohibited

108-17   under the bond proceedings applicable to the system, if any, of

108-18   which the turnpike project is a part.

108-19         Sec. 366.173.  REVENUE.  (a)  An authority may:

108-20               (1)  impose tolls for the use of each of its turnpike

108-21   projects and systems and the different parts or sections of each of

108-22   its turnpike projects and systems; and

108-23               (2)  contract with a person for the use of part of a

108-24   turnpike project or system or lease or sell part of a turnpike

108-25   project or system, including the right-of-way adjoining the paved

108-26   portion, for any purpose, including placing on the adjoining

108-27   right-of-way a gas station, garage, store, hotel, restaurant,

 109-1   parking facility, railroad track, billboard, livestock pasturage,

 109-2   telephone line or facility, telecommunication line or facility,

 109-3   data transmission line or facility, and electric line or facility,

 109-4   under terms set by the authority.

 109-5         (b)  Tolls must be set so that the aggregate of tolls from an

 109-6   authority's turnpike project or system, together with other revenue

 109-7   of the turnpike project or system:

 109-8               (1)  provides revenue sufficient to pay:

 109-9                     (A)  the cost of maintaining, repairing, and

109-10   operating the turnpike project or system; and

109-11                     (B)  the principal of and interest on the bonds

109-12   issued for the turnpike project or system as those bonds become due

109-13   and payable; and

109-14               (2)  creates reserves for a purpose listed under

109-15   Subdivision (1).

109-16         (c)  Tolls are not subject to supervision or regulation by

109-17   any state agency or other local governmental entity.

109-18         (d)  Tolls and other revenue derived from a turnpike project

109-19   or system for which bonds are issued, except the part necessary to

109-20   pay the cost of maintenance, repair, and operation and to provide

109-21   reserves for those costs as may be provided in the bond

109-22   proceedings, shall be set aside at regular intervals as may be

109-23   provided in the bond resolution or trust agreement in a sinking

109-24   fund that is pledged to and charged with the payment of:

109-25               (1)  interest on the bonds as it becomes due;

109-26               (2)  principal of the bonds as it becomes due;

109-27               (3)  necessary charges of paying agents for paying

 110-1   principal and interest; and

 110-2               (4)  the redemption price or the purchase price of

 110-3   bonds retired by call or purchase as provided by the bond

 110-4   proceedings.

 110-5         (e)  Use and disposition of money to the credit of the

 110-6   sinking fund is subject to the bond proceedings.

 110-7         (f)  To the extent permitted under the applicable bond

 110-8   proceedings, revenue from one turnpike project of an authority may

 110-9   be used to pay the cost of other turnpike projects of the

110-10   authority.

110-11         (g)  An authority may not use revenue from its turnpike

110-12   projects in a manner not authorized by this chapter.  Revenue

110-13   generated from a turnpike project may not be applied for a purpose

110-14   or to pay a cost other than a cost or purpose that is reasonably

110-15   related to or anticipated to be for the benefit of a turnpike

110-16   project.

110-17         Sec. 366.174.  AUTHORITY REVOLVING FUND.  (a)  An authority

110-18   may maintain a revolving fund to be held in trust by a banking

110-19   institution chosen by the authority separate from any other funds

110-20   and administered by the authority's board.

110-21         (b)  An authority may transfer into its revolving fund money

110-22   from any permissible source, including:

110-23               (1)  money from a turnpike project if the transfer does

110-24   not diminish the money available for the project or the system, if

110-25   any, of which it is a part to less than an amount required to be

110-26   retained by the bond proceedings pertaining to the project or

110-27   system;

 111-1               (2)  money received by the authority from any source

 111-2   and not otherwise committed, including money from the transfer of a

 111-3   turnpike project or system or sale of authority assets;

 111-4               (3)  advances authorized under Section 52-b, Article

 111-5   III, Texas Constitution; and

 111-6               (4)  contributions, loans, grants, or assistance from

 111-7   the United States, another state, a political subdivision of this

 111-8   state, a foreign governmental entity, including the United Mexican

 111-9   States or a state of the United Mexican States, a local

111-10   governmental entity, any private enterprise, or any person.

111-11         (c)  The authority may use money in the revolving fund to:

111-12               (1)  finance the acquisition, construction,

111-13   maintenance, or operation of a turnpike project or system,

111-14   including the extension, expansion, or improvement of a project or

111-15   system;

111-16               (2)  provide matching money required in connection with

111-17   any federal, state, local, or private aid, grant, or other funding,

111-18   including aid or funding by or with public-private partnerships;

111-19               (3)  provide credit enhancement either directly or

111-20   indirectly for bonds issued to acquire, construct, extend, expand,

111-21   or improve a turnpike project or system;

111-22               (4)  provide security for or payment of future or

111-23   existing debt for the design, acquisition, construction, operation,

111-24   maintenance, extension, expansion, or improvement of a turnpike

111-25   project or system;

111-26               (5)  borrow money and issue promissory notes or other

111-27   indebtedness payable out of the revolving fund for any purpose

 112-1   authorized by this chapter; and

 112-2               (6)  provide for any other reasonable purpose that

 112-3   assists in the financing of an authority as authorized by this

 112-4   chapter.

 112-5         (d)  Money spent or advanced from the revolving fund for a

 112-6   turnpike project or system must be reimbursed from the money of

 112-7   that turnpike project or system, and there must be a reasonable

 112-8   expectation of such repayment at the time of authorization.

 112-9         Sec. 366.175.  USE OF SURPLUS REVENUE.  The board of an

112-10   authority may by resolution authorize the use of surplus revenue of

112-11   a turnpike project or system to pay the costs of another turnpike

112-12   project or system other than a project financed under Subchapter G.

112-13   The board may in the resolution prescribe terms for the use of the

112-14   revenue, including the pledge of the revenue, but may not take an

112-15   action under this section that violates, impairs, or is

112-16   inconsistent with a bond resolution, trust agreement, or indenture

112-17   governing the use of the surplus revenue.

112-18         Sec. 366.176.  EXEMPTION FROM TAXATION OR ASSESSMENT.

112-19   (a)  An authority is exempt from taxation of or assessments on:

112-20               (1)  a turnpike project or system;

112-21               (2)  property the authority acquires or uses under this

112-22   chapter; or

112-23               (3)  income from property described by Subdivision (1)

112-24   or (2).

112-25         (b)  An authority is exempt from payment of development fees,

112-26   utility connection fees, assessments, and service fees imposed or

112-27   assessed by a county, municipality, road and utility district,

 113-1   river authority, any other state or local governmental entity, or

 113-2   any property owners' or homeowners' association.

 113-3         Sec. 366.177.  ACTIONS AFFECTING EXISTING ROADS.  (a)  An

 113-4   authority may impose a toll for transit over an existing free road,

 113-5   street, or public highway transferred to the authority under this

 113-6   chapter.

 113-7         (b)  An authority may construct a grade separation at an

 113-8   intersection of a turnpike project with a railroad or highway and

 113-9   change the line or grade of a highway to accommodate the design of

113-10   the grade separation.  The action may not affect a segment of the

113-11   state highway system without the department's consent.  The

113-12   authority shall pay the cost of a grade separation and any damage

113-13   incurred in changing a line or grade of a railroad or highway as

113-14   part of the cost of the turnpike project.

113-15         (c)  If feasible, an authority shall provide access to

113-16   properties previously abutting a county or other public road that

113-17   is taken for a turnpike project and shall pay abutting property

113-18   owners the expenses or any resulting damages for a denial of access

113-19   to the road.

113-20         Sec. 366.178.  FAILURE OR REFUSAL TO PAY TOLL.  (a)  A motor

113-21   vehicle other than a police or emergency vehicle that passes

113-22   through a toll collection facility, whether driven or towed, shall

113-23   pay the proper toll.

113-24         (b)  A person who fails or refuses to pay a toll provided for

113-25   the use of a project is liable for a fine not to exceed $250, plus

113-26   an administrative fee incurred in connection with the violation.

113-27         (c)  If a person fails to pay the proper toll:

 114-1               (1)  on issuance of a notice of nonpayment, the

 114-2   registered owner of the nonpaying vehicle shall pay both the proper

 114-3   toll and the administrative fee; and

 114-4               (2)  an authority may charge an administrative fee of

 114-5   not more than $100 to recover the cost of collecting the unpaid

 114-6   toll.

 114-7         (d)  Notice of nonpayment under Subsection (c)(1) shall be

 114-8   sent by first-class mail and may not require payment of the proper

 114-9   toll and the administrative fee before the 30th day after the date

114-10   the notice is mailed.  The registered owner shall pay a separate

114-11   toll and administrative fee for each nonpayment.

114-12         (e)  If the registered owner of the vehicle fails to pay the

114-13   proper toll and administrative fee in the time specified by the

114-14   notice, the owner shall be cited as for other traffic violations as

114-15   provided by law, and the owner shall pay a fine of not more than

114-16   $250 for each nonpayment.

114-17         (f)  In the prosecution of a violation for nonpayment, proof

114-18   that the vehicle passed through a toll collection facility without

114-19   payment of the proper toll together with proof that the defendant

114-20   was the registered owner or the driver of the vehicle when the

114-21   failure to pay occurred, establishes the nonpayment of the

114-22   registered owner.  The proof may be by testimony of a peace officer

114-23   or authority employee, video surveillance, or any other reasonable

114-24   evidence.

114-25         (g)  The court of the local jurisdiction in which the

114-26   violation occurs may assess and collect the fine in addition to any

114-27   court costs.  The court shall collect the proper toll and

 115-1   administrative fee and forward the toll and fee to the authority.

 115-2         (h)  It is a defense to nonpayment under this section that

 115-3   the motor vehicle in question was stolen before the failure to pay

 115-4   the proper toll occurred and was not recovered by the time of the

 115-5   failure to pay, but only if the theft was reported to the

 115-6   appropriate law enforcement authority before the earlier of:

 115-7               (1)  the occurrence of the failure to pay; or

 115-8               (2)  eight hours after the discovery of the theft.

 115-9         (i)  A registered owner who is the lessor of a vehicle for

115-10   which a notice of nonpayment has been issued is not liable if, not

115-11   later than the 30th day after the date the notice of nonpayment is

115-12   mailed, the registered owner provides to the authority a copy of

115-13   the lease agreement covering the vehicle on the date of the

115-14   nonpayment.  The name and address of the lessee must be clearly

115-15   legible.  If the lessor timely provides the required information,

115-16   the lessee of the vehicle on the date of the violation is

115-17   considered to be the owner of the vehicle for purposes of this

115-18   section.  The lessee is subject to prosecution for failure to pay

115-19   the proper toll if the authority sends a notice of nonpayment to

115-20   the lessee by first-class mail not later than the 30th day after

115-21   the date of the receipt of the information from the lessor.

115-22         Sec. 366.179.  USE AND RETURN OF TRANSPONDERS.  (a)  For

115-23   purposes of this section, a transponder is a device placed on or

115-24   within an automobile that is capable of transmitting or receiving

115-25   information used to assess or collect tolls.  A transponder is

115-26   insufficiently funded if there is no money in the account for which

115-27   the transponder was issued.

 116-1         (b)  Any law enforcement or peace officer of an entity with

 116-2   which an authority has contracted under Section 366.182(c) may

 116-3   seize a stolen or insufficiently funded transponder and return it

 116-4   to the authority that issued the transponder.  An insufficiently

 116-5   funded transponder may not be seized before the 30th day after the

 116-6   date that an authority has sent a notice of delinquency to the

 116-7   holder of the account.

 116-8         Sec. 366.180.  CONTROLLED ACCESS TO TURNPIKE PROJECTS.

 116-9   (a)  An authority may designate a turnpike project or a portion of

116-10   a project as a controlled-access toll road.

116-11         (b)  An authority by order may:

116-12               (1)  prohibit the use of or access to or from a

116-13   turnpike project by a motor vehicle, bicycle, other vehicle, or a

116-14   pedestrian;

116-15               (2)  deny access to or from:

116-16                     (A)  its turnpike projects;

116-17                     (B)  real property adjacent to its turnpike

116-18   projects; or

116-19                     (C)  a street, road, alley, highway, or other

116-20   public or private way intersecting its turnpike projects;

116-21               (3)  designate locations on its turnpike projects at

116-22   which access to or from the toll road is permitted;

116-23               (4)  control, restrict, and determine the type and

116-24   extent of access permitted at a designated location of access to

116-25   the turnpike projects; or

116-26               (5)  erect appropriate protective devices to preserve

116-27   the utility, integrity, and use of its turnpike projects.

 117-1         (c)  Denial of access to or from a segment of the state

 117-2   highway system is subject to the approval of the commission.

 117-3         Sec. 366.181.  PROMOTION OF TOLL ROADS.  An authority may

 117-4   promote the use of its turnpike projects by appropriate means,

 117-5   including advertising or marketing as the authority determines

 117-6   appropriate.

 117-7         Sec. 366.182.  OPERATION OF TURNPIKE PROJECT.  (a)  An

 117-8   authority shall operate its turnpike projects through a force of

 117-9   toll-takers and other employees of the authority or through

117-10   services contracted under Subsection (b) or (c).

117-11         (b)  An authority may enter into an agreement with one or

117-12   more persons to provide, on terms and conditions approved by the

117-13   authority, personnel and services to design, construct, operate,

117-14   maintain, expand, enlarge, or extend the authority's turnpike

117-15   projects.

117-16         (c)  An authority may contract with any state or local

117-17   governmental entity for the services of peace officers of that

117-18   agency.

117-19         Sec. 366.183.  AUDIT.  An authority shall have a certified

117-20   public accountant audit the authority's books and accounts at least

117-21   annually.  The cost of the audit may be treated as part of the cost

117-22   of construction or operation of a turnpike project.

117-23         Sec. 366.184.  DISADVANTAGED BUSINESSES.  (a)  Consistent

117-24   with general law, an authority shall:

117-25               (1)  set goals for the award of contracts to

117-26   disadvantaged businesses and attempt to meet the goals;

117-27               (2)  attempt to identify disadvantaged businesses that

 118-1   provide or have the potential to provide supplies, materials,

 118-2   equipment, or services to the authority; and

 118-3               (3)  give disadvantaged businesses full access to the

 118-4   authority's contract bidding process, inform the businesses about

 118-5   the process, offer the businesses assistance concerning the

 118-6   process, and identify barriers to the businesses' participation in

 118-7   the process.

 118-8         (b)  This section does not exempt an authority from

 118-9   competitive bidding requirements provided by other law.

118-10         Sec. 366.185.  COMPETITIVE BIDDING.  (a)  A contract made by

118-11   an authority that requires the expenditures of public funds for the

118-12   construction or maintenance of a turnpike project must be let by a

118-13   competitive bidding procedure in which the contract is awarded to

118-14   the lowest responsible bidder that complies with the authority's

118-15   criteria.

118-16         (b)  The authority shall adopt rules governing the award of

118-17   contracts through competitive bidding.

118-18            (Sections 366.186-366.250 reserved for expansion

118-19                        SUBCHAPTER F.  GOVERNANCE

118-20         Sec. 366.251.  BOARD OF DIRECTORS.  (a)  An authority is

118-21   governed by a board of directors.

118-22         (b)  The commissioners court of each county of the authority

118-23   shall appoint one director to serve on the board.  The governor

118-24   shall appoint three directors to serve on the board.

118-25         (c)  Directors shall be divided into two groups.  To the

118-26   greatest degree possible, each group shall contain an equal number

118-27   of directors.  Directors shall serve terms of two years, except

 119-1   that one group of directors of the initial board of an authority

 119-2   shall serve for a term of one year.

 119-3         (d)  Two directors appointed by the governor must have

 119-4   resided in a county of the authority for at least one year before

 119-5   the person's appointment.  One director appointed by the governor

 119-6   must have resided in a county adjacent to a county of the authority

 119-7   for at least one year before the person's appointment.  Each

 119-8   director appointed by a commissioners court must have resided in

 119-9   that county for at least one year before the person's appointment.

119-10         (e)  All appointments to the board shall be made without

119-11   regard to race, color, disability, sex, religion, age, or national

119-12   origin.

119-13         (f)  An elected official is not eligible to serve as a

119-14   director.

119-15         (g)  A vacancy in a position shall be filled promptly by the

119-16   entity that made the appointment.

119-17         (h)  Each director has equal status and may vote.

119-18         (i)  The board of an authority shall select one director as

119-19   the presiding officer of the board to serve in that capacity until

119-20   the person's term as a director expires.  The board shall elect one

119-21   director as assistant presiding officer.  The board shall select a

119-22   secretary and treasurer, neither of whom need be a director.

119-23         (j)  The vote of a majority attending a board meeting is

119-24   necessary for any action taken by the board.  If a vacancy exists

119-25   on a board, the majority of directors serving on the board is a

119-26   quorum.

119-27         Sec. 366.252.  CONFLICT OF INTEREST.  (a)  A person is not

 120-1   eligible to serve on the board of an authority if the person or the

 120-2   person's spouse:

 120-3               (1)  is registered, certified, or licensed by an

 120-4   occupational regulatory agency in the field of toll road

 120-5   construction, maintenance, or operation;

 120-6               (2)  is employed by or participates in the management

 120-7   of a business entity or other organization regulated by the

 120-8   authority or receiving money from the authority;

 120-9               (3)  owns or controls, directly or indirectly, more

120-10   than a 10 percent interest in a business entity or other

120-11   organization regulated by or receiving money from the authority,

120-12   other than compensation for acquisition of turnpike right-of-way;

120-13               (4)  uses or receives a substantial amount of tangible

120-14   goods, services, or money from the authority, other than

120-15   compensation or reimbursement authorized by law for board

120-16   membership, attendance, or expenses, or for compensation for

120-17   acquisition of turnpike right-of-way;

120-18               (5)  is an officer, employee, or paid consultant of a

120-19   Texas trade association in the field of road construction,

120-20   maintenance, or operation; or

120-21               (6)  is required to register as a lobbyist under

120-22   Chapter 305, Government Code, because of the person's activities

120-23   for compensation on behalf of a profession related to the operation

120-24   of the authority.

120-25         (b)  A person may not act as the general counsel to an

120-26   authority if the person is required to register as a lobbyist under

120-27   Chapter 305, Government Code, because of the person's activities

 121-1   for compensation on behalf of a profession related to the operation

 121-2   of the authority.

 121-3         (c)  In this section, "Texas trade association" means a

 121-4   nonprofit, cooperative, and voluntarily joined association of

 121-5   business or professional competitors in this state designed to

 121-6   assist its members and its industry or profession in dealing with

 121-7   mutual business or professional problems and in promoting their

 121-8   common interests.

 121-9         Sec. 366.253.  SURETY BONDS.  (a)  Before beginning a term,

121-10   each director shall execute a surety bond in the amount of $25,000,

121-11   and the secretary and treasurer shall execute a surety bond in the

121-12   amount of $50,000.

121-13         (b)  Each surety bond must be:

121-14               (1)  conditioned on the faithful performance of the

121-15   duties of office;

121-16               (2)  executed by a surety company authorized to

121-17   transact business in this state; and

121-18               (3)  filed with the secretary of state's office.

121-19         (c)  The authority shall pay the expense of the bonds.

121-20         Sec. 366.254.  REMOVAL OF DIRECTOR.  (a)  It is a ground for

121-21   removal of a director from the board if the director:

121-22               (1)  did not have at the time of appointment the

121-23   qualifications required by Section 366.251(d);

121-24               (2)  whether at the time of appointment or at any time

121-25   during the director's term, is ineligible under Section 366.251(f)

121-26   or 366.252 to serve as a director;

121-27               (3)  cannot discharge the director's duties for a

 122-1   substantial part of the term for which the director is appointed

 122-2   because of illness or disability; or

 122-3               (4)  is absent from more than half of the regularly

 122-4   scheduled board meetings that the director is eligible to attend

 122-5   during a calendar year unless the absence is excused by majority

 122-6   vote of the board.

 122-7         (b)  The validity of an action of the board is not affected

 122-8   by the fact that it is taken when a ground for removal of a

 122-9   director exists.

122-10         (c)  If the administrative head of the authority has

122-11   knowledge that a potential ground for removal exists, that person

122-12   shall notify the presiding officer of the board of the ground.  The

122-13   presiding officer shall then notify the person that appointed the

122-14   director that a potential ground for removal exists.

122-15         Sec. 366.255.  COMPENSATION OF DIRECTOR.  Each director is

122-16   entitled to reimbursement for the director's actual expenses

122-17   necessarily incurred in the performance of the director's duties.

122-18   A director is not entitled to any additional compensation for the

122-19   director's services.

122-20         Sec. 366.256.  EVIDENCE OF AUTHORITY ACTIONS.  Actions of an

122-21   authority are the actions of its board and may be evidenced in any

122-22   legal manner, including a board resolution.

122-23         Sec. 366.257.  PUBLIC ACCESS.  An authority shall:

122-24               (1)  make and implement policies that provide the

122-25   public with a reasonable opportunity to appear before the board to

122-26   speak on any issue under the jurisdiction of the authority; and

122-27               (2)  prepare and maintain a written plan that describes

 123-1   how an individual who does not speak English or who has a physical,

 123-2   mental, or developmental disability may be provided reasonable

 123-3   access to the authority's programs.

 123-4         Sec. 366.258.  INDEMNIFICATION.  (a)  An authority may

 123-5   indemnify one or more of its directors or officers for necessary

 123-6   expenses and costs, including attorney's fees, incurred by the

 123-7   directors or officers in connection with any claim asserted against

 123-8   the directors or officers in their respective capacities as

 123-9   directors or officers.

123-10         (b)  If an authority does not fully indemnify a director or

123-11   officer as provided by Subsection (a), the court in a proceeding in

123-12   which any claim against the director or officer is asserted or any

123-13   court with jurisdiction of an action instituted by the director or

123-14   officer on a claim for indemnity may assess indemnity against the

123-15   authority, its receiver, or trustee only if the court finds that,

123-16   in connection with the claim, the director or officer is not guilty

123-17   of negligence or misconduct.

123-18         (c)  A court may not assess indemnity under Subsection (b)

123-19   for an amount paid by the director or officer to the authority.

123-20         (d)  This section applies to a current or former director or

123-21   officer of the authority.

123-22         Sec. 366.259.  PURCHASE OF LIABILITY INSURANCE.  (a)  An

123-23   authority shall insure its officers and employees from liability

123-24   arising from the use, operation, or maintenance of equipment that

123-25   is used or may be used in connection with the laying out,

123-26   construction, or maintenance of the authority's turnpike projects.

123-27         (b)  Insurance coverage under this section must be provided

 124-1   by the purchase of a policy of liability insurance from a reliable

 124-2   insurance company authorized to do business in this state.  The

 124-3   form of the policy must be approved by the commissioner of

 124-4   insurance.

 124-5         (c)  This section is not a waiver of immunity of the

 124-6   authority or the counties in an authority from liability for the

 124-7   torts or negligence of an officer or employee of an authority.

 124-8         (d)  In this section, "equipment" includes an automobile,

 124-9   motor truck, trailer, aircraft, motor grader, roller, tractor,

124-10   tractor power mower, and other power equipment.

124-11         Sec. 366.260.  CERTAIN CONTRACTS AND SALES PROHIBITED.  (a)

124-12   A director, agent, or employee of an authority may not:

124-13               (1)  contract with the authority; or

124-14               (2)  be directly or indirectly interested in:

124-15                     (A)  a contract with the authority; or

124-16                     (B)  the sale of property to the authority.

124-17         (b)  A person who violates Subsection (a) is liable for a

124-18   civil penalty to the authority not to exceed $1,000.

124-19         (c)  Subsection (a) does not apply to the sale of turnpike

124-20   right-of-way to an authority.

124-21         Sec. 366.261.  STRATEGIC PLANS AND ANNUAL REPORTS.  (a)  An

124-22   authority shall make a strategic plan for its operations.  A

124-23   majority of the commissioners courts of the counties composing the

124-24   authority shall by concurrent resolution determine the types of

124-25   information required to be included in the strategic plan.  Each

124-26   even-numbered year, an authority shall issue a plan covering the

124-27   next five fiscal years, beginning with the next odd-numbered fiscal

 125-1   year.

 125-2         (b)  Not later than March 31 of each year, an authority shall

 125-3   file with the commissioners court of each county of the authority a

 125-4   written report on the authority's activities describing all

 125-5   turnpike revenue bond issuances anticipated for the coming year,

 125-6   the financial condition of the authority, all project schedules,

 125-7   and the status of the authority's performance under the most recent

 125-8   strategic plan.  At the invitation of a commissioners court of a

 125-9   county in the authority, representatives of the board and the

125-10   administrative head of an authority shall appear before the

125-11   commissioners court to present the report and receive questions and

125-12   comments.

125-13         (c)  The authority shall give notice to the commissioners

125-14   court of each county of the authority not later than the 90th day

125-15   before the date of issuance of revenue bonds.

125-16         Sec. 366.262.  MEETINGS BY TELEPHONE CONFERENCE CALL.  (a)

125-17   Chapter 551, Government Code, does not prohibit any open or closed

125-18   meeting of the board, a committee of the board, or the staff, or

125-19   any combination of the board or staff, from being held by telephone

125-20   conference call.

125-21         (b)  A telephone conference call meeting is subject to the

125-22   notice requirements applicable to other meetings.

125-23         (c)  Notice of a telephone conference call meeting that by

125-24   law must be open to the public must specify the location of the

125-25   meeting.  The location must be a conference room of the authority

125-26   or other facility in a county of the authority that is accessible

125-27   to the public.

 126-1         (d)  Each part of the telephone conference call meeting that

 126-2   by law must be open to the public shall be audible to the public at

 126-3   the location specified in the notice and shall be tape-recorded or

 126-4   documented by written minutes.  On conclusion of the meeting, the

 126-5   tape recording or the written minutes of the meeting shall be made

 126-6   available to the public.

 126-7            (Sections 366.263-366.300 reserved for expansion

 126-8            SUBCHAPTER G.  AID FOR REGIONAL TURNPIKE PROJECTS

 126-9         Sec. 366.301.  DEPARTMENT CONTRIBUTIONS TO TURNPIKE PROJECTS.

126-10   (a)  To the extent permitted by the Texas Constitution, the

126-11   department may agree with an authority to provide for or contribute

126-12   to the payment of costs of financial or engineering and traffic

126-13   feasibility studies and the design, financing, acquisition,

126-14   construction, operation, or maintenance of a turnpike project or

126-15   system on terms agreed on by the commission or department, as

126-16   applicable, and the authority.  The agreement may not be

126-17   inconsistent with the rights of the bondholders or persons

126-18   operating the turnpike project under a lease or other contract.

126-19         (b)  The department may use its engineering and other

126-20   personnel, including consulting engineers and traffic engineers, to

126-21   conduct feasibility studies under Subsection (a).

126-22         (c)  An obligation or expense incurred by the commission or

126-23   department under this section is a part of the cost of the turnpike

126-24   project for which the obligation or expense was incurred.  Money

126-25   from the state highway fund spent under this section must be repaid

126-26   from tolls or other revenue of the turnpike project or system on

126-27   which the money from the state highway fund was expended.

 127-1         (d)  The commission or department may use federal money for

 127-2   any purpose described by this chapter.

 127-3         Sec. 366.302.  AGREEMENTS TO CONSTRUCT, MAINTAIN, AND OPERATE

 127-4   TURNPIKE PROJECTS.  (a)  An authority may enter into an agreement

 127-5   with a public or private entity, including a toll road corporation,

 127-6   the United States, a state of the United States, the United Mexican

 127-7   States, a state of the United Mexican States, a local governmental

 127-8   entity, or another political subdivision, to permit the entity,

 127-9   jointly with the authority, to study the feasibility of a turnpike

127-10   project or system or to acquire, design, finance, construct,

127-11   maintain, repair, operate, extend, or expand a turnpike project or

127-12   system.

127-13         (b)  An authority has broad discretion to negotiate

127-14   provisions in a development agreement with a private entity.  The

127-15   provisions may include provisions relating to:

127-16               (1)  the design, financing, construction, maintenance,

127-17   and operation of a turnpike project or system in accordance with

127-18   standards adopted by the authority; and

127-19               (2)  professional and consulting services to be

127-20   rendered under standards adopted by the authority in connection

127-21   with a turnpike project or system.

127-22         (c)  An authority may not incur a financial obligation on

127-23   behalf of, or otherwise guarantee the obligations of, a private

127-24   entity that constructs, maintains, or operates a turnpike project

127-25   or system.

127-26         (d)  An authority or a county in an authority is not liable

127-27   for any financial or other obligation of a turnpike project solely

 128-1   because a private entity constructs, finances, or operates any part

 128-2   of a turnpike project or system.

 128-3         (e)  An authority may authorize the investment of public and

 128-4   private money, including debt and equity participation, to finance

 128-5   a function described by this section.

 128-6         Sec. 366.303.  AGREEMENTS BETWEEN AUTHORITY AND LOCAL

 128-7   GOVERNMENTAL ENTITIES.  (a)  A local governmental entity other than

 128-8   a nonprofit corporation may, consistent with the Texas

 128-9   Constitution, issue bonds or enter into and make payments under

128-10   agreements with an authority to acquire, construct, maintain, or

128-11   operate a turnpike project or system.  The entity may levy and

128-12   collect taxes to pay the interest on the bonds and to provide a

128-13   sinking fund for the redemption of the bonds.

128-14         (b)  In addition to the powers provided by Subsection (a), a

128-15   local governmental entity may, within any applicable constitutional

128-16   limitations, agree with an authority to issue bonds or enter into

128-17   and make payments under an agreement to acquire, construct,

128-18   maintain, or operate any portion of a turnpike project or system of

128-19   that authority.

128-20         (c)  To make payments under an agreement under Subsection

128-21   (b), to pay the interest on bonds issued under Subsection (b), or

128-22   to provide a sinking fund for the bonds or the contract, a local

128-23   governmental entity may:

128-24               (1)  pledge revenue from any available source,

128-25   including annual appropriations;

128-26               (2)  levy and collect taxes; or

128-27               (3)  provide for a combination of Subdivisions (1) and

 129-1   (2).

 129-2         (d)  The term of an agreement under this section may not

 129-3   exceed 40 years.

 129-4         (e)  Any election required to permit action under this

 129-5   subchapter must be held in conformity with Chapter 1, Title 22,

 129-6   Revised Statutes, or other law applicable to the local governmental

 129-7   entity.

 129-8         Sec. 366.304.  ADDITIONAL AGREEMENTS OF AUTHORITY.  An

 129-9   authority may enter into any agreement necessary or convenient to

129-10   achieve the purposes of this subchapter.

129-11         SECTION 7.26.  Subchapter F, Chapter 411, Government Code, is

129-12   amended by adding Section 411.132 to read as follows:

129-13         Sec. 411.132.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:

129-14   REGIONAL TOLLWAY AUTHORITIES.  (a)  A regional tollway authority

129-15   governed by Chapter 366, Transportation Code, is entitled to obtain

129-16   from the department criminal history record information maintained

129-17   by the department that pertains to a person who is:

129-18               (1)  employed by the regional tollway authority; or

129-19               (2)  an applicant for employment with the regional

129-20   tollway authority.

129-21         (b)  Criminal history record information obtained under

129-22   Subsection (a) may not be released or disclosed to any person

129-23   except in a criminal proceeding, in a hearing conducted by the

129-24   regional tollway authority, on court order, or with the consent of

129-25   the person who is the subject of the criminal history record

129-26   information.

129-27         SECTION 7.27.  (a)  Notwithstanding Section 366.031,

 130-1   Transportation Code, as added by this Act, the North Texas Tollway

 130-2   Authority is established as a regional tollway authority under

 130-3   Chapter 366, Transportation Code, as added by this Act.

 130-4         (b)  The North Texas Tollway Authority consists of all

 130-5   territory in Collin, Dallas, Denton, and Tarrant counties.  The

 130-6   operations of the authority may extend to other counties as

 130-7   permitted under Section 366.161, Transportation Code, as added by

 130-8   this Act, and the jurisdiction of the authority may be expanded to

 130-9   include other counties under Section 366.031, Transportation Code,

130-10   as added by this Act.  As of the effective date of this Act, Cooke,

130-11   Ellis, Fannin, Grayson, Hunt, Johnson, Kaufman, Parker, Rockwall,

130-12   and Wise counties are the only counties that meet the geographical

130-13   qualifications for future inclusion in the North Texas Tollway

130-14   Authority.

130-15         (c)  Notwithstanding Section 366.251, Transportation Code, as

130-16   added by this Act, the initial board of directors of the North

130-17   Texas Tollway Authority is composed of nine directors as follows:

130-18               (1)  three directors appointed by the governor, two of

130-19   whom must have resided in a county of the authority for at least

130-20   one year before the person's appointment and one of whom must have

130-21   resided in Parker County, Ellis County, or Johnson County for at

130-22   least one year before the person's appointment;

130-23               (2)  one director appointed by the commissioners court

130-24   of each county in the authority; and

130-25               (3)  the county judges of two of the counties of the

130-26   authority, as agreed by a majority of the county judges of the

130-27   authority.

 131-1         (d)  The terms of the initial directors of the North Texas

 131-2   Tollway Authority begin on September 1, 1997.  The county judges

 131-3   serving as initial directors shall each serve a one-year term.  At

 131-4   the expiration of that term, the seats held by the county judges

 131-5   are not refilled, and the number of directors composing the board

 131-6   is reduced to seven but may be increased if additional counties

 131-7   join the authority.

 131-8         (e)  One of the directors of the North Texas Tollway

 131-9   Authority appointed to the initial board by the governor serves a

131-10   one-year term.  Each successor to that director shall be appointed

131-11   by the governor for a two-year term.

131-12         (f)  The two directors appointed to the initial board of the

131-13   North Texas Tollway Authority by the commissioners courts of the

131-14   counties whose county judges serve as initial directors each serve

131-15   a one-year term.  Each successor to those directors shall be

131-16   appointed for a two-year term.  The remaining initial directors

131-17   serve two-year terms.

131-18         SECTION 7.28.  Sections 361.003, 361.038, 361.039, 361.040,

131-19   361.041, 361.044, 361.045, 361.047, 361.048, 361.139, 361.190, and

131-20   361.284, and Subsection (e), Section 361.331, Transportation Code,

131-21   are repealed.

131-22          ARTICLE 8.  TRANSITION, EFFECTIVE DATE, AND EMERGENCY

131-23         SECTION 8.01.  (a)  The Texas Turnpike Authority is abolished

131-24   and the Texas Turnpike Authority division of the Texas Department

131-25   of Transportation is created on the effective date of this Act.

131-26   Except as provided by Subsections (b) and (c) of this section, all

131-27   assets, rights, and obligations of the Texas Turnpike Authority are

 132-1   transferred to the division.

 132-2         (b)  The North Texas Tollway Authority shall succeed to all

 132-3   assets, rights, and other property of the Texas Turnpike Authority

 132-4   located in Collin, Dallas, Denton, or Tarrant County, including all

 132-5   assets and rights that relate to the Dallas North Tollway, the

 132-6   Addison Airport Toll Tunnel, the President George Bush Turnpike,

 132-7   the Mountain Creek Lake Bridge, all existing and proposed

 132-8   extensions to those projects, the Texas Turnpike Authority

 132-9   administration building, and all other facilities, improvements,

132-10   leaseholds, funds, accounts, and investments related to a project

132-11   listed in this subsection.

132-12         (c)  The North Texas Tollway Authority shall assume and

132-13   become liable for all duties and obligations of the Texas Turnpike

132-14   Authority related to the assets, rights, and properties transferred

132-15   under Subsection (b) of this section, including contracts and bonds

132-16   secured by the revenues of the assets.  The North Texas Tollway

132-17   Authority is obligated to comply with all the assumed obligations

132-18   to the same extent as the Texas Turnpike Authority.

132-19         (d)  An employee of the Texas Turnpike Authority may elect to

132-20   become an employee of either the Texas Turnpike Authority division

132-21   of the Texas Department of Transportation or the North Texas

132-22   Tollway Authority on the effective date of this Act, subject to the

132-23   employment openings and requirements of those entities.

132-24         (e)  A rule or regulation adopted by the Texas Turnpike

132-25   Authority relating to the operation of a turnpike in Collin,

132-26   Dallas, Denton, or Tarrant County before the effective date of this

132-27   Act that is not inconsistent with this Act remains in effect as a

 133-1   rule or regulation of the North Texas Tollway Authority until

 133-2   superseded by action of that entity.

 133-3         SECTION 8.02.  (a)  As additional consideration for the

 133-4   transfer of the properties described in Subsection (b) of Section

 133-5   8.01 of this Act, the North Texas Tollway Authority shall pay to

 133-6   the Texas Turnpike Authority division of the Texas Department of

 133-7   Transportation $10 million not later than December 31, 1997.  In

 133-8   making the payment, the authority and the department shall ensure

 133-9   that following the payment, the authority is in compliance with all

133-10   bond resolutions, bond indentures, credit agreements, and all other

133-11   agreements assumed by the authority and that reserves held by the

133-12   authority as required under or in connection with the resolutions,

133-13   indentures, credit agreements, and other agreements shall be

133-14   maintained at a level consistent with the Texas Turnpike

133-15   Authority's historical practices.

133-16         (b)  The North Texas Tollway Authority shall hire an

133-17   independent auditor to conduct an audit of the records of the

133-18   authority. The audit must identify all funds in the possession of

133-19   the authority that belong to the Texas Turnpike Authority division

133-20   of the Texas Department of Transportation.  Except for the transfer

133-21   required by Subsection (a) of this section, the authority must

133-22   transfer to the department all funds identified as belonging to the

133-23   department not later than December 31, 1998.

133-24         SECTION 8.03.  The North Texas Tollway Authority is a

133-25   successor agency to the Texas Turnpike Authority for all purposes,

133-26   including for the purpose of Section 52-b, Article III, Texas

133-27   Constitution, concerning all assets, rights, other property,

 134-1   duties, and obligations transferred to the authority under

 134-2   Subsection (b) of Section 8.01 of this Act.  The Texas Department

 134-3   of Transportation is a successor to the Texas Turnpike Authority

 134-4   for all purposes concerning assets, rights, other property, duties,

 134-5   and obligations not transferred to the North Texas Tollway

 134-6   Authority under Subsection (b) of Section 8.01 of this Act.  Any

 134-7   existing agreement by and between the Texas Turnpike Authority and

 134-8   the state, the Texas Transportation Commission, the Texas

 134-9   Department of Transportation, the Federal Highway Administration,

134-10   the United States Department of Transportation, any other federal

134-11   or state governmental entity, or any local governmental entity that

134-12   pertains to an asset, right, or obligation transferred to the North

134-13   Texas Tollway Authority under this Act is binding on, benefits, and

134-14   is fully enforceable by and against the North Texas Tollway

134-15   Authority as successor to the Texas Turnpike Authority.

134-16         SECTION 8.04.  The changes in law made by this Act in the

134-17   qualifications of members of the Texas Transportation Commission or

134-18   the Texas Motor Vehicle Commission do not affect the entitlement of

134-19   a member serving on one of those commissions before September 1,

134-20   1997, to continue to carry out the functions of the commission for

134-21   the remainder of the member's term.  The changes in law apply only

134-22   to a member appointed on or after September 1, 1997.  This Act does

134-23   not prohibit a person who is a member of the Texas Transportation

134-24   Commission on September 1, 1997, from being reappointed to that

134-25   commission if the person has the qualifications required for a

134-26   member under Chapter 201, Transportation Code, as amended by this

134-27   Act.  This Act does not prohibit a person who is a member of the

 135-1   Texas Motor Vehicle Commission on September 1, 1997, from being

 135-2   reappointed to that commission if the person has the qualifications

 135-3   required for a member under the Texas Motor Vehicle Commission Code

 135-4   (Article 4413(36), Vernon's Texas Civil Statutes), as amended by

 135-5   this Act.

 135-6         SECTION 8.05.  (a)  The governor shall appoint the six

 135-7   directors to the board of directors of the Texas Turnpike Authority

 135-8   division of the Texas Department of Transportation for initial

 135-9   terms as follows:  two to serve terms expiring February 15, 1999,

135-10   two to serve terms expiring February 15, 2001, and two to serve

135-11   terms expiring February 15, 2003.

135-12         (b)  Until a majority of the board of directors of the Texas

135-13   Turnpike Authority division of the Texas Department of

135-14   Transportation has been appointed and has qualified, the members of

135-15   the board of directors of the Texas Turnpike Authority serving

135-16   immediately before the effective date of this section shall

135-17   exercise the authority granted to the board of directors of the

135-18   Texas Turnpike Authority division of the Texas Department of

135-19   Transportation.  When a majority of the members of the board of

135-20   directors of the Texas Turnpike Authority division of the Texas

135-21   Department of Transportation has been appointed and has qualified

135-22   and until all appointees have taken office, a quorum of the board

135-23   is a majority of the number of directors who have qualified.

135-24         SECTION 8.06.  This Act takes effect September 1, 1997.

135-25         SECTION 8.07.  The importance of this legislation and the

135-26   crowded condition of the calendars in both houses create an

135-27   emergency and an imperative public necessity that the

 136-1   constitutional rule requiring bills to be read on three several

 136-2   days in each house be suspended, and this rule is hereby suspended.